RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Stock index futures continued their rally this week, closing at new highs on Thursday and trading higher overnight on news that a phase one deal trade with China has been signed by President Trump. Adding to the upside in stocks is the Fed’s announcement of a repurchase operation extending into mid-January. This adds liquidity to the economy, and liquidity is a friend of the stock market. Trade headlines own the news Friday morning, so the market seems to be shrugging off weaker-than-expected retail sales, coming in at 0.2% growth vs 0.5% expected. The “Santa Claus” rally seems to be alive and well. New highs were achieved during the Chinese press conference and a close over 3180 calls for a push over 3200! The market has now seen 45 days without a 1% move in either direction. This melt-up resembles the rally we saw during quarter one and is an extremely bullish pattern. With a phase one trade deal complete, the market will likely be looking for a phase two deal to emerge in the headlines going into early next year.

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Ian Bannon

Market Strategist
Ian’s interest in trading began with the stock market after graduating from Purdue University with a degree in Economics and a focus in international business. A natural strength for numbers, trends, and pattern recognition, in conjunction with a curiosity to understand the big picture has enabled a desire to understand market behavior. Ian managed his own stock account before moving into the futures arena because of the wide scope of trade-able sectors and the ample amount of fundamental support behind these larger-scope markets.
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