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Futures Markets Insights: September 9, 2020

RJO Futures

Contributor:
RJO Futures
Visit: RJO Futures

By:

Senior Asset Manager

Overnight:

The crash, and the BOUNCE.  Be conscious of the idea that that may be “it” on the downside for now.  We saw the “heart attack” drop at the 5pm open last night, and then a rally ensued overnight.  We saw the NASDAQ and SPY correct more the 10%, and -8.1% in fairly short order, but bear in mind we still have elevated volatility that it may take a week or 2 to work through.  All remains to be seen, but those are my most recent thoughts on the recent bout of volatility. 

Global Indices:

USA – SP500 +0.92, Nasdaq +1.66%

Europe – GER +1.23%, FRA +0.81%, UK +1.07%

Asia – Lower across the board, Shanghai -1.86%, KOSPI -1.00%

Futures Markets

Currencies:

Plenty of immediate-term oversold signals in Foreign Currencies were triggered last night (All bullish trend)

GBP, Euro, Swiss, and CAD to name a few, as the US Dollar registers immediate overbought/bearish trend.

Energy:

  • Crude Oil registers an immediate oversold signal, while flirting with a trend breakdown (but its holding).  News of weaker expected demand in the fossil fuels market assisted in the near-term momentum breakdown in Oil prices. 
  • Nat Gas also registering immediate oversold yesterday, followed by a 3.00% bounce in the overnight. 
  • Energy remains bullish trend and one of our favorite “longs” in our current “stagflationary” economic backdrop

Actionable Levels

MarketTrendRange LowRange HighNotes
     
SP500Bullish32933522Volatlity elevating >26.00 – warrants caution for bulls
Nasdaq 100Bullish10,95212,040VXN wrong side of 40.00
Russell 2000Bearish14921583Holding better than the SP500 and NADAQ
10yr YieldBearish0.60%0.75%Range bound trade, doing nothing following exit yesterday
VIXNeutral25.5635.62Bullish trend > 26.00
OilBullish37.0142.06Saudi’s cut prices, now immediate oversold/low end
GoldBullish19111991approaching oversold for long side trade
USD (Cash)Bearish91.8993.54Immediate overbought/bearish trend
EUR/USDBullish117119Higher high/low in the range – bullish
USD/JPYBearish105.31106.75Yen remains bullish vs the USD – tightening range

Originally Posted on September 9, 2020 – Futures Markets Insights: September 9, 2020

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