Market Review
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 3028.50 | Opening Print: 2966 |
| Low: 2923.75 | High 3068.25 Late |
| Volume: 520,000 | Low: 2952.50 After Open |
| ES Settlement: 3073.00 | |
| Total Volume: 2..06M |
After falling 9% from the year highs, the S%P 500 was able to hold settlement above the 200 day moving average yesterday after testing the 50 day. Look for the 3160-3170 area today before finding any real resistance.
After falling 9% from the year highs, the S%P 500 was able to hold settlement above the 200 day moving average yesterday after testing the 50 day. Look for the 3160-3170 area today before finding any real resistance.
E-Mini S&P +1.2% ahead of the market open, Nasdaq +1.15%, RTY +2.15%, Dow future +1.7%
DATA/HEADLINES:
8:30ET Retail Sales; 9:15ET Industrial Production, Capacity Utilization; 10:00ET Home Builders Index, Business Inventories, Fed Chairman Powell’s testimony Federal Reserve Chairman Jerome Powell delivers his semi-annual policy report to Congress today. His remarks are widely expected to echo his downbeat assessment of the economy at the post-policy decision press conference last week. US exports to China in the first four months of 2020 have been less than 50% of the pace needed to hit the purchase goal by year end, according to Peterson Institute. North Korea blew up an inter-Korean liaison office on its side of the border. North Korean state media said the country is reviewing a plan to send troops into the demilitarized zone separating it from South Korea. Trump will sign an executive order today that will seek to improve how police officers treat African Americans and others.
U.S. airlines rose post market as the U.S. further loosened restrictions on flights from China. Singapore scientists testing a COVID-19 vaccine from U.S. firm Arcturus Therapeutics (ARCT) plan to start human trials in August after promising initial responses in mice. Moderna said efficacy data for its vaccine may be ready by Thanksgiving. Apple faces two EU antitrust investigations. One will look at terms and conditions for Apple Pay. Apples says the EU is reviewing baseless complaints from rival
TODAY’S HIGHLIGHTS:
The global stocks rally was back on track today, with more support from the Federal Reserve and the Bank of Japan helping end a bumpy few days for financial markets. Global stocks advanced as plans for more American stimulus revived investor sentiment. Japanese shares got added support from the Bank of Japan increasing a corporate-lending support program and a gauge of European corporate debt risk fell the most in two months.
EQUITIES:
Oracle and Groupon are among the companies reporting results US equity futures advanced as the Fed’s plan to buy corporate bonds and a potential infrastructure proposal outweighed concerns over the second wave of infections and tensions in Korea. The Fed is set to start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility. The Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to revive growth in the US. Most will be earmarked for roads and bridges, but there’ll also be handouts for 5G and rural broadband. American Airlines Group, Norwegian Cruise Line Holdings, and Carnival Corp. notched some of the biggest gains in U.S. pre-market trading.
S&P 500: June Expiration Week #ES ‘Short Squeeze’
Today’s recap is going to be short and sweet. The ES traded 2966.25 on yesterday’s open, down ticked to the daily low at 2952.50 and went on an upside terror making over 20 higher lows and 20 higher highs all the way up to 3068.25 at 1:31 CT. After pulling back down to 3050.25 the ES rallied up to a lower high of 3063.50 and traded 3044.00 at 2:30 as the MiM showed $1.5 billion to sell. On the 2:50 cash imbalance, the ES traded 3044.50 as the final MIM showed $1.6 billion to sell, traded 3056.75 on the 3:00 cash close and traded 3062.50 on the 3:15 futures close, up 38 handles or +1.26% on the day, 144.50 handles off the 2923.75 Globex low or 115.75 handles off the day session low of 2952.50 just after the open.
In the end, the big sell-off that started last week climaxed on Globex when it made new lows at 2923.75 Sunday night, rallied sharply before yesterday’s open and totally ripped higher after yesterday’s open. In terms of the day’s overall trade, a total of 2.06 million futures traded.
Economic Calendar
Closing Prices
In the Tradechat Room
MiM
Not even a negative MOC was going to stop this train from going to the top. Despite our negative and growing outlook in the 15:50 ET reveal, we were going higher on Fed news of corporate bond buying. Sometimes the MOC just does not matter.
Reminder: June is Russell 2000 reconstitution month. Here is the schedule for that:
- Friday, May 8 – “rank day” – Russell US Index membership eligibility for 2020 reconstitution determined from constituent market capitalization at market close.
- Friday, May 22 – “query period” begins – preliminary shares & free-float information for Russell 3000 Index constituents are published daily & queries welcomes (query period runs through June 12)
- June 5 – preliminary US index add & delete lists posted to the FTSE Russell website after 6 PM US eastern time.
- June 12 & 19 – US index add & delete lists (reflecting any updates) posted to the FTSE Russell website after 6 PM US eastern time.
- June 15 – “lockdown” period begins – US index adds & delete lists are considered final
- June 26 – Russell Reconstitution is final after the close of the US equity markets.
- June 29 – equity markets open with the newly reconstituted Russell US Indexes.
Questions? Please email me: Marlin@mrtopstep.com
Get the skinny when we get it: Join the MiM.
Chart of the Day
Top Stories on MTS Overnight:
- Premium OP: Up, Down, All Around
- GS: Interview with Peter Oppenheimer about the selloff
- Practice, Practice, Practice Makes Perfect Elliott…
- Equity Index Futures Rollover Dates
- KEY PIVOTS USA-EUROPE 08.18.16
- Closing imbalance a powerful trading tool
- MamamanciniS Holdings, Inc. (MMMB) Surpasses Q1…
- MrTopStep Unplugged LIVE on Periscope Tomorrow
- MrTopStep 10 Handle Rule hit less than 60 Minutes…
- Oil Prices and the 2019 Hurricane Season
- Goldman Sachs is going through a huge transformation…
- Futures higher, but investors still wary about shutdown
Our View
Record Options Open Interest
All this stock market ‘thrashing’ has made for some record options open interest. My guess is most of the jump is ‘option hedges’ that are expiring on Friday. If that is indeed the case then it’s possible we are going a lot higher this week. MiM 400 mil to sell now. Exactly what I want to see.
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
Did you know that your premium membership gives you access to our Market Vitals? Click on the image below and get today’s key levels.
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.
No responses yet