Trump To Tillerson – Youre Fired

Charts, Commentary, News, Stocks, Technical Analysis, The Opening Print

Index Futures Net Changes and Settlements:

Contract Settlement Net Change +/-%
S&P 500 (ESM18:CME) 2772.75 -16.25 -0.58%
Dow Jones (YMM18:CBT) 25,050 -188 -0.75%
Nasdaq 100 (NQM18:CME) 7083.25 -82.50 -1.16%
Russell 2000 (RTYM:CME) 1600.60 -5.30 -0.33%

Foreign Markets, Fair Value and Volume:

  • In Asia 10 out of 11 markets closed lower: Shanghai Comp -0.57%, Hang Seng -0.53%, Nikkei -0.87%
  • In Europe 11 out of 12 markets are trading higher: CAC +0.38%, DAX +0.47%, FTSE +0.34%
  • Fair Value: S&P +5.40, NASDAQ +27.15, Dow +33.27
  • Total Volume: 1.2mil ESH and 1.6mil ESM & 13k SPH, and 12.9k SPM traded in the pit

Today’s Economic Calendar:

MBA Mortgage Applications 7:00 AM ET, PPI-FD 8:30 AM ET, Retail Sales 8:30 AM ET, Atlanta Fed Business Inflation Expectations 10:00 AM ET, Business Inventories 10:00 AM ET, and the EIA Petroleum Status Report 10:30 AM ET.

S&P 500 Futures: Lack Of Confidence At White House Makes For Increased Volatility; Cohn Walks And Trillerson Fired; Dollar Slides

Yesterday started with the Asian markets closing mostly higher, and the Stoxx 600 down -0.10% at midday. The S&P 500 futures (ESM18:CME) sold off after Mondays $1.4 billion to buy MOC, making a Globex low at 2786.25, before trading up to 2805.00 at 7:45 AM CT. Overnight volume was high, 364,000 e-mini S&P futures contracts traded. On the 8:30 CT open the ES printed 2800.25, traded up above the Globex high to 2807.50, and then started the move down.

By 11:00 CT, the ES made a low at 2774.00, down -14.25 handles on the day. Once the early low was made, the ES stutter stepped back up to 2788.25, and then got hit by another wave of sell programs down to 2778.00. From there, the futures bumped up to 2781.75, sold off down to a new low at 2771.50, then rallied up to 2777.25 before tanking down to another new low at 2765.50, 42.50 handles off the high of the day.

When the MiM opened up showing $403 million to buy, the ES initially rallied a few handles, but the late strength was short lived. The MiM flipped to $220 million to sell, and the ES sold off down to yet another new low at 2762.50. Once the stops had been run, the selling pressure died down, and the futures crept back up to 2773.00. On the 3:00 cash close the ES traded 2771.00, and went on to settle at 2772.50 on the 3:15 futures close, down -15.75 handles, or – 0.56% on the day.

The PitBull asked me why the ES sold off so hard, and I said it was because of the ‘revolving door’ at the White House. He said that was not the case. I think it was. The stock market hates uncertainty, and thats whats been going on with the Trump administration. Like it or not, President Trump’s three key people have either left or been fired in one week. Additionally, the Europeans are getting ready to battle the U.S. over Trump’s tariffs. None of this is good for the markets.

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Danny Riley (2941 Posts)

Danny Riley has worked in the futures and options industry for 38 years, including the CBOT’s bond room, where he worked for several of the Market Wizards. He went on to build the largest volume desk in the S&P 500 Index Futures, serving some of the largest banks and hedge funds, the UBS program trading business, and some of the world's top individual traders. As a leader and co-creator of the MrTopStep IM-Pro Trading Room, he shares trading ideas and breaking market news live from the floor with our other professional traders and new traders eager to experience the power of collective intelligence. Join us today and get the edge only social trading can give you.

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