Market Review
There are just a few days where you can look back and say, “If we lose that level it’s all down from here!”
And that day may have been April 30 where the price was at the highs. End of the month profit-taking? Perhaps? Here’s what I told my subscribers.
Later in the week, last Friday, price started to get a bid. Over the weekend, price gapped down. And then Monday, it was off to the races for the running of the bulls! Of course, that was the first of this week…
FORWARD — FRIDAY, May 8, 2020
Today, providing buying pressure persists, the bulls may have the April 29/30 highs in their sights. The catalyst just might be the country is back and open for business.
Now the highly paid experts and those on the panel say, “There could be a second wave…”
Yea, I don’t really see that happening!
Now that everybody is required to wear a mask and social distancing is rigorously enforced it appears to be more of a CYA exercise so the powers that be can show they did all they could do. It is an election year you know…
Once again, persistent selling pressure appears during realtime CASH and Globex just puts price right back up again. Currently trading 2912 handle. We could be back at those highs before Sun Up or Sun Down…
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We had a good week this week. Our subscribers have been very lucky with the levels given: 35 points Monday, 6 Tuesday, 9 points Wednesday, 37 points Thursday. Total for the week 87 points, that would be $4,350 on 1 lot and $13,050 on 3 lots. That is if your brokerage firm allowed you to take every trade.
I’ll be the first to say, it does NOT happen every week. When it does it’s a beautiful thing! I would love for you to join us.
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MiM
More data. Our early indications are now showing up just after 3:00 pm ET. We had an early buy indication with a flip around 3:50 pm ET to the sell side. The early data is still swamped by the Nasdaq data. The NYSE-symbols-only list never went to the sell side. The actual MOC was a decent top line size of 831M but still no conviction on that symbol percentage number. We are just drifting along without enthusiasm or real directional trading. It reminds me of summer trading.
Questions? Please email me: Marlin@mrtopstep.com
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Chart of the Day
Top Stories on MTS Overnight:
- Elon Musk Says Tesla Battery Patent ‘Way More…
- Friday: Employment Report
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- Tesla Confirms Shanghai Gigafactory Shutdown, But…
- Avalara (AVLR) Reports Q1 Loss, Tops Revenue Estimates
- Coronavirus (COVID-19) Update: Daily Roundup May 7, 2020
- Why Small Caps Lag In This Economic Downturn
- Data rooms: less work and even more results
- Why Small Caps Lag In This Economic Downturn
Globex
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 2881.75 | Opening Print: 2874.50 |
| Low: 2823.00 | High 2895.00 |
| Volume: 340,000 | Low: 2867,75 |
| ES Settlement: 2880.25 Up 46.25 handles or +1.63% | |
| Total Volume: 1.45 M |
S&P 500 Futures: #Unemployment Disaster; S&P Up 1.63%
One would think the markets would sell-off when the jobless claims number shows 3.2 unemployment claims making for 33 1/2 million people out of work since the government shutdowns began. In all honesty, I shudder typing it. Like the PitBull said yesterday, our way of life has changed forever.
The ES traded 2874.50 on Thursday’s 8:30 CT futures open. After the open, the ES down ticked to 2872.50 at 8:37, rallied up to 2886.75 at 8:56. The ES then traded back down 2868.75 and then chopped all the way up to 2894.25 at 10:46. After the high, the ES pulled back down to 2884.75. At 12:09 the ES traded 2892.75. The ES then sold off down to 2868.25 at 2:15
At 2:30 the ES traded 2875.50 and traded 2872.75 as the 2:50 cash imbalance showed $900 million to buy. On the 3:00 cash close the #ES traded 2873.00 and settled at 2880.25, up 46.25 handles or up 1.63% on the day.
In terms of the ES’s tone, everything acted firmly all day. In terms of the day’s overall trade, there were a total of 1.31 million ES traded with 340,000 coming from Globex making total day volume only 970,000 contracts traded on the day session.
Our View
How Far Is Far?
Recently the S&P has been making good of the bad news but I don’t think that’s how it’s going to play out after this morning’s jobs report. I am not going to do a big view but what I will say is if the ES is sharply higher after the jobs number my lean would be to sell the open. We have run a lot of buy stops and the ES is short term overbought. After the drop, we will be looking for the 11:00 low and bounce and then I think we could see the ES head lower in the afternoon trade.
Danny Riley is a 39-year veteran of the CME trading floor. He has helped run one of the largest S&P desks on the floor of the CME Group since 1985.
Market Vitals Technical Analysis
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As always, please use protective buy and sell stops when trading futures and options.
Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Decisions to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
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