Golf, Anyone?
A boring session has produced a mass exit from the equity index futures pits. The session has been dominated from the opening bell by a complete lack of institutional interest and locals trading with each other. In fact, dealers with 30 contracts to buy or sell were spotlighted in the pit, a sure sign of the range type trade we are involved with.
However, it is worth noting that the PPI report has convinced many players in our arena that the Fed is done raising rates and new contract highs may be seen before September. But, let’s come back to earth for a moment and discuss the rest of the afternoon. I will be on the golf course. However, the junior traders at my firm — they get stuck in the office on days like this — will be looking for the following. If we can continue to hold the support between 1512.50 and 1510.50 higher prices should ensue, possibly to 1521. As for the downside, any trading below 1510 should lead to 1505, which will make or break the session. Sustained trading below 1505 could lead us to 1490.