After a strong Monday, which saw the Dow Jones increase by 300 points, Tuesday looks to keep that momentum going. There are hopes that the economy will be reopened soon and traders seem like they are betting on that as Dow Jones futures rose 1.4% early today, followed by S&P 500 and the Nasdaq 100 at 1.3% and 1.1%. On the otherhand, oil futures don’t seem to have as positive of an outlook, in fact some think the price of oil could go negative again. The CME just raised their margin requirements on oil contracts and that move could trigger a sell-off if key levels are reached. Early this morning we saw June WTI Oil dive a whopping 22% before levelling off at 16%. The direction of oil is impossible to predict.

On Monday, the United States registered our 1-millionth positive test for coronavirus, and the disease really doesn’t show any signs of slowing down, the daily number keeps increasing. Futhermore, many states are putting together plans to reopen their economies. Texas, Colorado, Florida, and Georgia have already started to reopen in phases, a plan that many states will follow. New York Gov. Andrew Cuomo said on Sunday that New York will begin to open up in phases too, potentially beginning as early as May 15. I imagine we’ll be hearing a lot more about this as time passes, until then stay tuned.

E-mini S&P 500 Jun ’20 Daily Chart

RJOF Editorial Team