SPX500
Yesterday, Monday was the day off in the USA and, in fact, all the actions of the index market participants were only speculative. No data were received from the NASDAQ exchange and, accordingly, it was difficult to determine which of the positions to enter. Also, lower liquidity created increased intra-day market volatility. On Friday, the SPX500 met resistance in the area of ??the 2933 monthly volatility zone. Since the opening of the stock market on Friday to the present day, the price has continued to decline and is between the two 2911 daily and 2889 weekly volatility zones. The opening of the European market also shows a declining trend, and this in turn negatively affects the price of all indices.
skrinshoter.ru/i/030919/Pla8x6X5.png
Today's important event will be the publication of PMI reports on production in the USA and this event will tell the further direction of the market until a decision on the US interest rate (September 18, 2019), which is likely to be further reduced to 1.75%, as evidenced by a mathematical calculation based on 30- daily bonds where the majority of experts in the amount of 97.3% speak of a decrease to the range of 2% - 1.75% from the current level of 2.25% established on July 31, 2019.
skrinshoter.ru/i/030919/wsfQibVP.png
skrinshoter.ru/i/030919/05iXVEaF.png
Also yesterday, you could notice a very serious change in the cumulative delta in the DowJones 30 and NASDAQ 100 indices, as well as a sideways movement in the SP500 index, which also indicates an event to reduce prices for all US stock indices
skrinshoter.ru/i/030919/jw7MOn5k.png
If you noticed, then the SPX500 index just differed in its dynamics of the cumulative delta from the rest, which in turn can be used in pair trading (statistical arbitrage).
Selling DowJones 30 (1 contract)
Purchase of SP500 (9 contracts)
skrinshoter.ru/i/030919/yKcZQeCB.png
And for fans of linear trading, I recommend waiting for the PMI reports and, based on a detailed review of these reports, which I will publish the next day, you can judge the further movement of the SPX500 stock index. For those who still can’t wait to enter into the deal, sales within the framework of the day before the publication of reports will be more appropriate than purchases. The final goal is to choose the lower zone of monthly volatility of 2820.
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Artem Yaskiv @smart4trader
Yesterday, Monday was the day off in the USA and, in fact, all the actions of the index market participants were only speculative. No data were received from the NASDAQ exchange and, accordingly, it was difficult to determine which of the positions to enter. Also, lower liquidity created increased intra-day market volatility. On Friday, the SPX500 met resistance in the area of ??the 2933 monthly volatility zone. Since the opening of the stock market on Friday to the present day, the price has continued to decline and is between the two 2911 daily and 2889 weekly volatility zones. The opening of the European market also shows a declining trend, and this in turn negatively affects the price of all indices.
skrinshoter.ru/i/030919/Pla8x6X5.png
Today's important event will be the publication of PMI reports on production in the USA and this event will tell the further direction of the market until a decision on the US interest rate (September 18, 2019), which is likely to be further reduced to 1.75%, as evidenced by a mathematical calculation based on 30- daily bonds where the majority of experts in the amount of 97.3% speak of a decrease to the range of 2% - 1.75% from the current level of 2.25% established on July 31, 2019.
skrinshoter.ru/i/030919/wsfQibVP.png
skrinshoter.ru/i/030919/05iXVEaF.png
Also yesterday, you could notice a very serious change in the cumulative delta in the DowJones 30 and NASDAQ 100 indices, as well as a sideways movement in the SP500 index, which also indicates an event to reduce prices for all US stock indices
skrinshoter.ru/i/030919/jw7MOn5k.png
If you noticed, then the SPX500 index just differed in its dynamics of the cumulative delta from the rest, which in turn can be used in pair trading (statistical arbitrage).
Selling DowJones 30 (1 contract)
Purchase of SP500 (9 contracts)
skrinshoter.ru/i/030919/yKcZQeCB.png
And for fans of linear trading, I recommend waiting for the PMI reports and, based on a detailed review of these reports, which I will publish the next day, you can judge the further movement of the SPX500 stock index. For those who still can’t wait to enter into the deal, sales within the framework of the day before the publication of reports will be more appropriate than purchases. The final goal is to choose the lower zone of monthly volatility of 2820.
--------------------------
Artem Yaskiv @smart4trader
