Shortened week caused by observance of the Labor Day holiday have started with the upside session. S&P 500 managed to close with plus almost 0.6% on remarkably weak dollar (caused by pulling out of safe-haven investments into more risky assets against the background of G20 finance ministers optimistic weekend statements) & commodities rally, particularly strong gold (that finally broke out above 1k$/oz but still closed below psychological level) and oil rally (on bullish OPEC members commitments ahead of tomorrow meeting plus environment on other notable markets i have mentioned above).
But there goes thing, bulls to worry about. As one ES trader fellow wondered today: “Isn't summer trading over? I thought summer was over. This sure feels like a summer trade.” The truth is near. Today’s volume, putting into numbers, was minus 21% relatively to the median volume of ESU9 contract, (which tracks ES from june to september current year) & minus 41% relatively to 1st september volume, meaning of which i have pointed out lately.
Yes, after tremendous volume expenditure on 1st september breakout back below 1000p on S&P 500 (as did E-mini S&P 500) we now have pared all the losses and breached today 1022.5p – 1028.75p ES volume cluster of late august – the only resistance separating bulls from the new year highs (see chart below). But the market increase was on a very low volume, never exceeding volume ES posted on Tuesday 1st september. That’s just something to remember while entering long & calling for fresh highs.
Back to my summarized post after the past week finish, i have shared with you intention to monitor energy & financial sectors, cause of reasons I have described there. Today XLE, energies, was the strongest sectors relatively to the other 7 sectors i’m tracking, on the reason of oil case, i have described above. The sector have soared more than 2.6% and since 31st august when SPY was near its highest point of the year, energy back from that day is already in small, but plus (0.3%). Moreover, it has pared all of its losses back from the beginning of last summer week, 35th from the year start. Such recovery corresponds to be very bullish signal. But still closer to the OPEC meeting, volatility in oil can expand dramatically with hardly predictable short-term movements and inevitable influence on energies.
Financial sector today was slightly underperforming SPY, but the real movement took place in the 4 financial giants stocks I mentioned in one of the previous post. C, AIG, FRE & FNM have shrunk today on the median of almost 7%. Since its peak on 31st august, they have fallen on an average of more than 20% for just 6 last trading sessions. But XLF, financial sector overall, today have managed to stay up 0.43%. Good for him, but 4 mentioned remarkable financial guys plunge is something to keep in mind & not to be surprised to see weakness of financials in the upcoming sessions.
But there goes thing, bulls to worry about. As one ES trader fellow wondered today: “Isn't summer trading over? I thought summer was over. This sure feels like a summer trade.” The truth is near. Today’s volume, putting into numbers, was minus 21% relatively to the median volume of ESU9 contract, (which tracks ES from june to september current year) & minus 41% relatively to 1st september volume, meaning of which i have pointed out lately.
Yes, after tremendous volume expenditure on 1st september breakout back below 1000p on S&P 500 (as did E-mini S&P 500) we now have pared all the losses and breached today 1022.5p – 1028.75p ES volume cluster of late august – the only resistance separating bulls from the new year highs (see chart below). But the market increase was on a very low volume, never exceeding volume ES posted on Tuesday 1st september. That’s just something to remember while entering long & calling for fresh highs.
Back to my summarized post after the past week finish, i have shared with you intention to monitor energy & financial sectors, cause of reasons I have described there. Today XLE, energies, was the strongest sectors relatively to the other 7 sectors i’m tracking, on the reason of oil case, i have described above. The sector have soared more than 2.6% and since 31st august when SPY was near its highest point of the year, energy back from that day is already in small, but plus (0.3%). Moreover, it has pared all of its losses back from the beginning of last summer week, 35th from the year start. Such recovery corresponds to be very bullish signal. But still closer to the OPEC meeting, volatility in oil can expand dramatically with hardly predictable short-term movements and inevitable influence on energies.
Financial sector today was slightly underperforming SPY, but the real movement took place in the 4 financial giants stocks I mentioned in one of the previous post. C, AIG, FRE & FNM have shrunk today on the median of almost 7%. Since its peak on 31st august, they have fallen on an average of more than 20% for just 6 last trading sessions. But XLF, financial sector overall, today have managed to stay up 0.43%. Good for him, but 4 mentioned remarkable financial guys plunge is something to keep in mind & not to be surprised to see weakness of financials in the upcoming sessions.
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