RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

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 U.S. 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

Keeping in tight this morning, Good luck to all!

Actionable Levels

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John Caruso

Senior Market Strategist
Follow John on Twitter @JCarusoRJO. John began his career at Wilshire Quinn Capital, a Wealth Management Firm based out of Los Angeles, California. John made his move to the commodity industry at the end of 2005, and began his path at Lind Waldock, at the time the largest retail brokerage division worldwide. John did his undergraduate work at Robert Morris University in Pennsylvania from 1999-2003, where he was a 4 year varsity basketball letterman.  A self-professed “Macro Trader”, John uses a multi-factor fundamental and “quantamental” trading model in distinguishing market cycles based upon the accelerations or decelerations of growth and inflation metrics. His technical and quantitative approach is heavily reliant upon trend and market range analysis via a custom built standard deviation system in helping him make probability-based market decisions. John is an avid reader of all things pertaining to finance, and behavioral economics. Click here to sign-up for John Caruso's Trading Coach Insights. Daily information and insight on all futures marketsin ranging from metals to equities.
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