Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Tariffs Have Investors Running In Circles

Published 07/10/2018, 09:01 AM
UK100
-
FCHI
-
DJI
-
DE40
-
JP225
-
HK50
-
ESZ24
-

Index Futures Net Changes and Settlements:

Index Futures

Foreign Markets, Fair Value and Volume:

  • In Asia 8 out of 11 markets closed higher: Shanghai Comp +0.44%, Hang Seng -0.02%, Nikkei +0.66%
  • In Europe 12 out of 13 markets are trading higher: CAC +0.70%, DAX +0.66%, FTSE +0.22%
  • Fair Value: S&P +2.23, NASDAQ +17.52, Dow -10.63
  • Total Volume: 967k ESU & 335 SPU traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes NFIB Small Business Optimism Index 6:00 AM ET, Redbook 8:55 AM ET, and JOLTS 10:00 AM ET.

S&P 500 Futures: Bulls Run The Shorts Out, DJIA Up 320 Ponts / DJT Up 214 Points

Stocks Up 4 In A Row

Mondays trade started with the Shanghai Comp +2.49%, Hang Seng +1.32%, Nikkei +1.21%, the CAC +0.25%, DAX -0.02%, and FTSE +0.28% at midday. The range on Globex for the S7P 500 futures was 2561.75 to 2775.25 with 127,000 contracts traded. The first print off Monday’s futures open was 2773.50.

Just after the open the futures traded up to 2779.00, stutter stepped down to 2772.75 at 9:20 CT, abd then in came a big buy program the pushed the ES up to 2782.75, up +20 handles, going into 10:30. After a couple three and four handle pullbacks the ES traded up to 2785.50. Once the high was in, the ES pulled back down to 2780.75 and then rallied back up to 2784.00 before dropping down to 2779.25. At 1:00 CT total volume was only 670,000.

As the ES moved into the final part of the trading day the futures started to rally into the close, pushing up to 2786.25 just after 2:00 pm, then pulled back to 2782.50 before rallying up to a new high of day of 2787.75 just before the close. At the 3:00 pm the ES printed 2786.50, and then settled the day at 2787.50, up +24.50 handles on the day, or +0.89%.

In the end the bears had their way for several weeks, and now the bulls have gained leadership. When the markets go down like they have been, traders get nervous, they sell the S&P as a spec trade, they sell the S&P as a hedge, and they sell calls. This type of selling can take several days to unwind.

In terms of the days overall tone, the bulls kept things pretty tight with only a few four or five handle pull backs. In terms of the days overall trade, volume was low, only 967k ESU18s traded.

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.

Original post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.