Happy Monday! No change over the weekend for Nasdaq Futures. After a bit of sideways action (or lack thereof) we see selloff continue in the European market hours before bouncing back to the 5-minute VWAP in the premarket.
As for the economic outlook not much scheduled for the week, however this week kicks off the Q3 earnings season. JP Morgan will be the first major company to release earnings Friday. Interested to see what this earnings season brings as Q2 earnings season came with a suppression of volatility.
Volume check showing some strength to kick off the week with GCZ18 and CLX18 above 100K by 08:00 EST. CL trading slightly bearish so far while GC already down by 1.09%. Euro futures experiencing a similar selloff as Gold futures.
The day following a ton of up-down volatility from indecision yesterday, as we can see from the doji candlestick on the daily chart, today’s futures session starts off slightly bearish for the Nasdaq. Headlines give selloff credit to lower Treasuries on higher yields for selloff in the overall markets. However, with the measuring being Nasdaq, Dow and S&P 500 Futures, as of 07:55 EST the selloff is moderate at best and all aforementioned indices have strong support with big picture trend still bullish to neutral.
Taking a look at the watchlist (NQ, CL, GC, 6E), other than the already mentioned bearish NQ, GC and 6E starting to open up bullish while CL continues to trade sideways in a tight 40 tick range. We get a break on the economic calendar today with nothing significant scheduled.
Volume check at 07:30 showing moderate strength in the premarket. Just another day, nothing special to see here. So far, 6EZ18 the only futures contract on my watchlist that’s above the 100K volume mark.
UPDATE: At of 08:00 EST CL broke intraday support with the potential to start a bearish trend.
Following the strong selloff in the yesterday’s afternoon session (I totally missed that easy money), Nasdaq futures (as well as other indices) continue to fall bearish leading up to the opening bell. As of 07:30, NQZ18 traded down more than 0.50% at it lowest point. Looks to be entering a channel, seeing resistance from the 5-minute VWAP. Additionally, Economic Outlook has Fed in sight with Powell speaking during the lunch hour.
Also, it will be interesting to see what happens with Crude Oil after soaring into new four-year high territory. So far, Crude is trading sideways but it would be fair to expect some retracement, from profit takers and traders looking to take advantage of pullback following the bullish strength.
Big picture, volume check shows strong volume for the premarket with CLX18 and 6EX18 above 100K of volume. GCZ18 only 4K from reaching the 100K volume mark.
In addition to price action mentioned above for NQ and CL, 6E trading bearish while GC looking bullish.
COB Recap
Another low energy morning. I’m sure traders are waiting for Powell to speak which is unfortunate for traders like me who only trade the morning session. At the open, I as a bit too aggressive and entered short anticipating the signal instead of actually waiting for the proper signal. Ended up getting stopped out for a full loss.
As usual when I get off to a losing start like this, I struggled for the remainder of the day. Only catching some small scalps to make a small portion of the losses back. The fortunate part is this was all in the Topstep account, so I didn’t lose any real money.
Also, I worked on working CL back into my trading plan. Took two trades on CL that both were break even only due to working out some kinks with how I had things setup. I also paper traded in Sierra Chart with not much better results. Watch the video below for details of how the day went. Really hoping things are better tomorrow. Honestly, I will be a little upset if things take off in the afternoon after Powell speaks like what happened yesterday after Trump’s speech.