Futures: Opening Print and S&P Levels to Watch
We do not know why, but there is a clear absence of hedge fund, bank and proprietary trading desk trading right now. Sure the option markets are still trading, but the rest of the crowd seems to be going slow since the Labor Day holiday.
It could have something to do with trying to hold on to gains that many hedge funds saw earlier in the year. In fact, there's no doubt about it. At 6:00am CT the S&P has gone from up .75 handles to down .25 handles, the range is a measly 4.25 handles from 1684 to 1679.75 with 110,000 contracts traded. You can almost hear crickets.
Our view is to sell the early rally and buy weakness. True, we often recommend that (and get proven right most of the time). But the trick is in the timing. This isn't a set-it-and-forget-it trade. The rally doesn't happen on a fixed schedule and weakness is in the eye of the beholder. The key for individual traders is to go in with targets and a definite exit strategy.
As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.
OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits
MrTopStep can be followed on Twitter at twitter.com/MrTopStep
For LIVE futures chat, more information on the 10-handle rule and futures educational content CLICK HERE FOR A SEVEN-DAY FREE TRIAL.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV