A Long Slow Summer Day: Low Volume, Low Volatility

Published 07/14/2014, 03:50 PM
Updated 05/14/2017, 06:45 AM
US500
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After a rally Sunday evening and overnight, the S&P 500 (CME:SPU14) topped at 1974 and then stayed in a 4-point range, closing less than a point above the low of 1970.

It was a low-volume, low volatility day showing that many traders are simply taking long weekends. We expect that as short sellers begin to cover, we’ll see some rallies out of this sideways range. Those will be opportunities for the longs to sell. As that selling happens, we should see a pullback and further buying opportunities.

Historically the July expiration is not positive, so we don’t expect much of an increase through this week, unless we get an unexpected increase in overall volume.

Don’t forget our webinar with TraderMinute right after the close on Thursday. They are doing another $100,000 challenge using low-risk option strategies. It’s a great addition to anyone’s trading playbook and we encourage you to check it out. Summertime is a great time to trade options.

HIGH: 1974.00 Early
LOW: 1970.00 Late
LAST: 1970.75 UP 8.25 Handles
TOTAL VOLUME: ESU 890k( 150k Globex ); SPU 2.6k
MOC: SELL $530mil

FOR TOMORROW:

Retail Sales
Empire State Mfg. Survey
Import/Export Prices
Redbook
Business Inventories
Janet Yellen speaks at the semi-annual monetary policy testimony to senate banking committee – (Humphrey Hawkins)

The S&P was in a 4 handle range all day…Can you say Summer Vacation?

Looking for a small change going into the later parts of the week…

Get the shorts to cover. Get everyone long into the rally and we should pull back.

TraderMinute webinar this Thursday July 17, 3:30pm CST/4:30pm EST…Dont Miss It!

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