Dow Swings 850 Points In Final 2 1/2 Hours

Published 12/30/2018, 01:00 AM
Updated 07/09/2023, 06:31 AM
UK100
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FCHI
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DJI
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DE40
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JP225
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HK50
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ESH25
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NG
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These Swings Are Unforgiving

Index Futures Net Changes and Settlements:

Index Futures

Foreign Markets, Fair Value and Volume:

  • In Asia 10 out of 11 markets closed higher: Shanghai Comp +0.44%, Hang Seng +0.10%, Nikkei -0.31%
  • In Europe 13 out of 13 markets are trading higher: CAC +1.67%, DAX +1.78%, FTSE +1.93%
  • Fair Value: S&P +0.52, NASDAQ +15.14, Dow -21.47
  • Total Volume: 2.26mil ESH & 502 SPH traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes International Trade in Goods 8:30 AM ET, Retail Inventories 8:30 AM ET, Wholesale Inventories 8:30 AM ET, Chicago PMI 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, and the Baker-Hughes Rig Count 1:00 PM ET.

S&P 500 Futures: #ES Total Pain Game

S&P 500 Futures

After trading lower by nearly 50 handles in the overnight session, the S&P 500 futures opened yesterday’s regular hours at 2433.50, and traded to the early morning high of 2445.75 in the first 10 minutes. The futures then turned lower, pulling back down to the 2413.50 morning low, then chopped higher back up to what would be the midmorning high of 2444.75, before selling off down to a late morning low of 2415.75.

The afternoon saw more weakness as the ES went down to 2397.00, the halfway mark of yesterday’s total range, but was able to attract buyers there that propelled the ES back up to 2430 heading into the final hour. The futures continued to rally late in the day as the MiM showed over $1 billion to buy, pushing up to 2498.75, then printing 2491.00 at 3:00, and settling the day at 2493.25, up +22.25 handles, or +0.90%.

I don’t mean to be brash, but there is no way we have ever seen the size of the daily swings we have been seeing over the last two plus months, it’s off the hook. Yesterday the Dow went from down 600 to up 250 points in the final hours of the day. The ES made a low at 2397 and rallied 102 handles. In the end, the robots took over, and the humans are being destroyed. As for the ES’s overall tone, it went from terrible, back to OK. In terms of the days overall trade, only 2.26 million e-mini S&P futures contracts traded which is lower than we have been seeing.

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.

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