Short Sellers Caught With Their Pants Down At Month End

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 9 out of 11 markets closed higher: Shanghai Comp +1.86%, Hang Seng +1.37%, Nikkei +0.83%
• In Europe 12 out of 13 markets are trading higher: CAC +0.22%, DAX -0.39%, FTSE +0.47%
• Fair Value: S&P -0.45, NASDAQ +2.34, Dow -6.72
• Total Volume: 1.41mil ESM & 817 SPM traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes the Weekly Bill Settlement, Challenger Job-Cut Report 7:30 AM ET, Jobless Claims 8:30 AM ET, Personal Income and Outlays 8:30 AM ET, Chicago PMI 9:45 AM ET, Bloomberg Consumer Comfort Index 9:45 AM ET, Pending Home Sales Index 10:00 AM ET, EIA Natural Gas Report 10:30 AM ET, EIA Petroleum Status Report 11:00 AM ET, Raphael Bostic Speaks 12:30 PM ET, Lael Brainard Speaks 1:00 PM ET, Fed Balance Sheet and Money Supply 4:30 PM ET, and Robert Kaplan Speaks 8:30 PM ET.

S&P 500 Futures: #ES Day After Big Drops, All Buy Stops And Buy Programs

Wednesday’s trade started with the major Asian markets down and the Stoxx 600 up 0.30% at midday. On Globex the S&P 500 futures (ESM18:CME) had an overnight trading range of 2685.75 to 2707.75, and an 8:30 CT opening print of 2703.50. The benchmark futures made an early low of 2701.75 at 9:04, and at 11:25 traded all the way up to 2724.50. After this headline came out, “MOODY’S REVIEWS ITALIAN BANKS FOR DOWNGRADE” the ES made new highs. After the high the ES pulled back to 2720 before reloading higher pushing up to 2729.25 at 1:30 for the high of the day.

The trade was a great example of too many traders short, and month end buying.

Going into the final hour of the day the futures began to pull back, and heading into 2:30 the MiM started showing over $500 million to sell as the ES gave back gains down to 2721.00. When the actual MOC came out as $1.1 billion to sell, the ES flip flopped and rallied to print 2724.25 on the cash close. At the 3:15 settlement the ES was at 2725.00, up +32.75 handles on the day, or +1.22%.

In the end, the last two days have been a big water in the bathtub type trade. Push the water one way, then push it the other way. Tuesday the ES closed down -26.00 handles, and yesterday it closed up +32.75 handles. Kind of negates the selloff. Despite the last 10 out of 11 days seeing big MOC selling, the S&P seems to be holding up, or at least until the next big headline.

The story below is no joke. There are hundreds of addictions, but trading / gambling is a hard one to kick. It’s all about the thrill of beating the dealer / markets, but the cryptocurrency craze has really exploited the average person into thinking they can make money trading. We all know that’s not how things work!!!

Hospital launches rehab clinic to treat cryptocurrency addiction

A Scottish hospital has fielded inquiries from all over the world about its newly launched crypto rehab unit…

Read: https://www.marketwatch.com/story/hospital-launches-rehab-clinic-to-treat-cryptocurrency-addiction-2018-05-29

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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. Any decision 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.}