Market Review

NJ, the Discovery Trading Group (DTG)

There’s not much to say about the S&P 500 e-minis (ESH20 contract) price movement for Monday, Jan 6.  US traders rejected the early bearish sentiment from US/Iran/Iraq post drone bombing and turned US stocks bullish.  The ESH20 went up from cash open into the cash close.  

Let’s review how the ESH20 unfolded Monday against DTG’s Jan 6th levels and level comments.  After a low failure of Friday’s GLOBEX low and then a second low failure of Monday’s GLOBEX low, the ESH20 made an impressive end-to-end bull trend day where, in the final half-hour of the cash session, the bulls busted through DTG’s projected 3240/43 high of the day.  

All DTG resistance levels provided some intraday resistance during the cash session, but given the early low failures, long was a good initial direction until proven otherwise.  DTG support levels frequently provide good areas for pullbacks in trends and today was no exception. So I’ll focus on trading long from the DTG support levels.

Rather than write out how the ESH20 reacted at each DTG level, I’ve marked up the chart below with the DTG support levels and the associated worksheet comments, showing several ways one could have climbed on board the uptrend and possibly ride into the close.  The DTG 3240/43 projected high or the 3245/46s or a DTG level beyond made good trend day targets.


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Closing Prices


In the Tradechat Rooms

The MiM

The MiM remained mainly non-committal until about 3:30 pm ET where a buy-side began to grow, quit quickly and price confirmed as we moved to the highs of the day capping what was a classic trend up day.  

At the reveal at 3:50 pm, we showed a nice 3.3B buy imbalance that was paired by 3:55 pm to just 835M, still nice enough to squeeze those shorts into a higher close. 

HFT Alert

Our HFT alerts show 12 detected programs with 7 buys and 3 sells.  It was a trend up day so the programs did little to change any direction. 

Economic Calendar


Globex

High  3235.75
Low   3206.75
Volume 367,000

Day Session 1/3/2020

Opening Print 3214.25
High 3249.75  
Low  3213.25 after the open 
ES Settlement  3243.75
Total Volume 1.45 million
MiM $3.2 bil to buy 

#ES Globex Dip And Day RIP

The ES traded down to 3208.75 on Globex Sunday night and opened Monday regular session at 2814.25. After dropping one handle down to 3213.25 the ES started moving higher. Initially, the ES traded up to the 3234.50 area at 9:48 am CT, pulled back down to 3230.50 just after 10:00 am, then ‘back and filled’  for the next two hours and then ‘blasted’ up to new highs at 3241.75. After a small pull back the ES turned up as the 2:00 pm CT MiM started to show $248 million to buy and traded up to a new high at 3242.25, up 6.75 handles on the day. 

At 2:30 pm CT the ES traded 3240.25 as the MiM showed $808 million to buy, traded 3241.00 as the final 2:45 cash imbalance showed $3.2 billion to buy, traded 3247.25 on the 3:00 cash close and settled at 3242.75 on the 3:15 future’s close, up  36 handles, 1.14 % on the day. 

In the end, the ES and NQ acted very firm. In terms of the day’s overall trade, total volume was high with 1.45 million futures traded.


Video of the Day


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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