Index Futures Net Changes and Settlements:
|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.
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.