Index Futures Net Changes and Settlements:
Foreign Markets, Fair Value and Volume:
- In Asia 6 out of 11 markets closed higher: Shanghai Comp +0.18%, Hang Seng -0.43%, Nikkei +0.85%
- In Europe 13 out of 13 markets are trading higher: CAC +0.42%, DAX +0.18%, FTSE +0.15%
- Fair Value: S&P +0.38, NASDAQ +7.77, Dow -2.59
- Total Volume: 1.04mil ESU & 87 SPU traded in the pit
Today’s Economic Calendar:
Today’s economic calendar includes Durable Goods Orders 8:30 AM ET, Jerome Powell Speaks 10:00 AM ET, Jackson Hole Annual Economic Symposium, and the Baker-Hughes Rig Count 1:00 PM ET.
S&P 500 Futures: After The Cohen Headlines #ES Rallies To 2870
As traders we are always trying to out smart the markets. I think that’s a lot harder today than it was 10 or 15 years ago before the bots took over, but having a good feel and following your levels may be the best way to compete.
As I have said many times, I hate the term ‘in the old days’, but in some cases it has to be said. Years ago everything was about the economic releases; GDP, the jobs number, consumer credit, retail sales, and so on. Everyone was glued to the ‘reports’. Nowadays the eco reports really are not a factor. With the economy so strong, the markets overlook good and bad numbers everyday, and are totally out gunned by the headline news algos.
In Tuesdays view I warned people not to get overly comfortable about the upside, that risk goes up as more people get long into the rally, then after the close out comes the Cohen headlines that knocked the ES down 30 handles from its high. That, my fellow traders, is what I call the new world trading order. Headlines over economics.
Wednesday night the S&P 500 futures made a low at 2857.50 on Globex and then opened at 2759.75. The first move after the bell was a shot up to 2867.75, followed by a pullback down to 2864.25, and then a rally up to 2869.50. After that, the futures puked down to 2855.25, rallied a little, and then made a new low by two ticks down at 2854.75. Once the early low was in, the ES rallied back up to 2861.75, then sold back off down to a higher low at 2856.50 at 12:15. After the pullback the ES traded back up to the 2662 area.
As the MiM started to show $160 million to sell, the ES pulled back down to 2859.25, and then dropped down to 2857.50 as the MiM went to over $200 million to sell. On the 2:45 cash imbalance the ES traded 2855.00 as the final MiM showed $1.1 bil to sell, traded 2858.00 on the 3:00 cash close, and went on to settle at 2857.75 on the 3:15 futures close, down -3.5 handles, or -0.12% on the day.
In the end, without any major headline ‘blast’, it was another slow day on a list of many lately. Most kids are back in school, and after Labor day everyone will be back in school, and that’s when most people will be back trading. In terms of the markets overall tone, the ES acted firm, but did fall back. In terms of the days overall volume 1.04 million contracts traded, which is pretty much on par for what we have been seeing.
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