Hit the Mark Trading’s Brief Review of Overnight Market Action Setting the Tone for the Trading Day
Today is all about the USA Employment Situation report. As a rule, bonds futures are dangerous holding into this report. Since US dollar will be affected, gold could be volatile. Just be careful.
Rooster Call noted 44.60 as a level for crude yesterday. This level hit if anyone used it as a landing pad for a short.
DAX and STOXX 50 are heavily lower with Nikkei 225. This suggests USA equity index futures will move lower hard initially unless the jobs report changes trader attitude.
VIX futures soar overnight and 20 is within striking distance. Over 20 and we raise right eye brow and say, “uh oh…something is going to happen…”
Volatility expected to increase through election day, next Tuesday. Wednesday will definitely be interesting. You can bracket SPY with a slightly out of the money call and put and wait for the knee-jerk.
- Employment Situation – 8:30 AM ET
- International Trade – 8:30 AM ET
- Dennis Lockhart Speaks – 8:30 AM ET
- Rob Kaplan Speaks – 12:00 PM ET
- Baker-Hughes Rig Count – 1:00 PM ET
- Stanley Fischer Speaks – 4:00 PM ET
The only thing moving are equity index futures in a rush to cash. We have been seeing Cash is King! for a few weeks.
Bonds, Gold, US Dollar, Euro are all affected potentially with the 8:30AM ET jobs report. Remember…I am looking for hard USA equity index futures down move at the open unless jobs report changes things.
Think About This!
I would suggest you avoid the temptation of trading Tuesday night during the election returns. Anything can happen. Leave the trading to the machines and get a good night’s sleep.
To learn more from Martin, visit HitTheMarkTrading.com to join his mailing list and receive blog updates.