A plural of indexes, indices is a term often used in the markets. There are different indexes or indices in the markets and these don’t always move up or down in coordination. Indexed moving in tandem would create redundancy meaning that we don’t need more than one of them.
The Dow and the S&P500 are two extremely noteworthy as well as popular indices. While a change in the Dow indicated that the expectations of the investors have changed with regard to the risks and earnings of large companies, the S&P500 features 500 of the most highly traded stocks in the U.S.
Each index is different from another and each one behaves differently. You won’t find any one index that has continued to look the same over the years. Moreover, every index depicts a different thing. You can gain a deeper understanding into the world of indices.
We at Cannon Trading help you by providing the latest information on indices and their market performance. You can read it all here under one archive tagged as Indices. Read and be informed.
The move we saw from Friday morning right after job numbers to today was a very powerful, vertical up move.
The question, big question is:
Is this a vicious bear market rally, possibly an opportunity to sell?
Did market participants decided that rates will be at zero for foreseeable future ( ZIRP) and market just finished a healthy 10% correction and heading back to an all time high?
Big questions….I am not sure which way to lean but here my daily chart of the mini SP 500 with some levels to watch. We are right against key resistance, possible right shoulder in the head and shoulder formation.
EP – E-Mini S&P 500, Equalized Active Daily Continution : Heikin-Ashi
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EP – E-Mini S&P 500, Equalized Active Daily Continution : Heikin-Ashi
Been out due to rotator cuff surgery and back with limited typing ability….
Market is acting like a bear market. Lower lows, lower highs BUT still need to take out 1891 support level as seen below in the daily Heikin-Ashi chart of Dec. mini SP 500
This much anticipated FOMC lived up to expectations….tremendous volatility for sure. I hope some of you read my tips YESTERDAY about lowering trading quantities and widening stops etc.
That’s history but one thing I recommend, is write down notes from today. market behavior, your behavior etc. Keep it as part of your trading journal. Might help you the next FOMC…..What’s next? To be honest I am not sure at this point.
Here is my daily chart for the mini Russell 2000. Confused market in my opinion.
PS:
1. Many times the big move happens the DAY AFTER FOMC
2. Tomorrow is quadruple witching….
TFE – Russell 2000 Index Mini, Equalized Active Daily Continuation : Heikin-Ashi
I personally start trading the December mini SP this Friday but most traders will rollover tomorrow:
Rollover Notice for Stock Index Futures
Important notice: For those of you trading any stock index futures contracts, i.e., the E-mini S&P, E-mini NASDAQ, E-mini Dow Jones, the “Big” pit-traded S&P 500, etc., it is extremely important to remember that tomorrow, Thursday, September 10th, at 8:30 am CDT Time is rollover day.
Starting September 10th, the December 2015 futures contracts will be the front month contracts. It is recommended that all new positions be placed in the December 2015 contract as of September 10th. Volume in the September 2015 contracts will begin to drop off until its expiration on Friday Sept. 18th.
The month code for December is Z5.
Traders with electronic trading software should make sure that defaults reflect the proper contract as of Thursday morning.
The market structure has changed if you hadn’t noticed.
Does this change create more or less volatility?
ESUS-Daily(Default):6Hours 3minites 49 seconds
The past few weeks of volatility in the equity and bond markets have been absent of major players from previous market volatility.
Major banks, National banks (other than certain limited-purpose trust banks), federal savings associations, and federal branches and agencies of foreign banks (collectively, banks) are required to fully conform their activities and investments to the requirements of the final regulations by the end of the conformance period, which the FRB has extended to July 21, 2015 (please see footnote below)
Greetings! My lesson for today was something I actually mentioned in previous posts.
Twice I was in the right direction ( short the mini Russell) and twice I got stopped out only to see the market makes the move I anticipated.Should have implemented my own advice and WIDENED the stop based on recent volatility.
Better late than never, my new stop settings are in place for tomorrow!
* Some of the biggest one day rallies usually take place in bear markets.
* “Death Cross” occured in the Dow Jones, where the 50 days moving average crosses below the 200 day moving average. See chart below. This has not happened, yet, for the other 3 major indices ( NASDAQ, Russell 2000 and SP 500)
* In my opinion, unless you buy some longer term options and you are right on the direction and the timing, it does not really matter if you are right on the market direction..it is more important how you manage you position size, money management. In short try to take the emotions out of it and I think you will see things much clearer….
Summary from our friends at TradeTheNews.com below the daily chart of the Dow Jones Cash Index below.
This September has the potential of being one of the most volatile trading months in history…will know for sure by Sept. 30th….
Wishing you a great trading month ahead!!
TradeTheNews.com Weekly Market Update: Volatility Shakes Up Complacent Markets
After China refrained from expected stimulus moves over the weekend, global markets went into hysterics on Monday morning. Chinese stocks went negative on the year, helping to trigger a mini flash on at the New York open, sending the S&P 500 into its first correction in three years. China fears hit emerging markets again, exacerbating tensions in the market that were already on edge about the uncertainties surrounding an impending Fed rate hike. Chinese stimulus finally materialized after the Shanghai market closed on Tuesday, helping to reverse US stocks that morning though they retested the Monday lows by the end of the session. The fever broke on Wednesday as Chinese stocks stabilized, and bargain hunters began pouring in, sending most global equity markets higher through the back half of the week. Trading volumes remained very heavy during what is normally a quiet late August week and currency and commodity markets experienced wild volatility spikes as well. By the end of a week that shook complacent markets, the DJIA ended with a 1.1% gain, the S&P500 was up 0.9%, and the Nasdaq added 2.6%.
With markets on fire, all eyes were on Beijing to do something (chatter favored a big, meaty RRR reserve ratio cut) before the open of trade on Monday to stop the bleeding. China’s policy response did not impress: regulators said China’s national pension fund was now authorized to invest in the stock market, and the stock slide continued unabated. The action was so bad that Apple CEO Cook was compelled to release a statement to help calm markets saying the company was seeing strong growth in China in July and August, with iPhone activations up over recent weeks. No further extraordinary Chinese actions arrived during the Asia session on Tuesday and the Shanghai tanked another 7.6%. With the smell of fear everywhere, the PBoC finally stepped in with a 50 basis point RRR cut and lowered key deposit and lending rates, in a move that seemed to be timed to trap the short sellers that the government has been railing against.
I posted the following on FinanceMagnates.com back on August 5th about Dow Jones making lower highs and lower lows. Feel free to read that analysis at:
RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.
