11/11/2019 ES Trade Plan Worksheet

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Nov 112019

Today is US Veterans Day, banks are closed but US stock markets are open.  Expect volume to be lighter than normal which will either enable price volatility or stocks might do much of nothing once the cash open shakes out.

Protests in Hong Kong flared up again and police opened fire on the demonstrators, an escalation in the four-month protest after the death of a demonstrator last week.  It’s feared China might tighten their grip on the territory to squash the protests.

On the US/China trade war front, Trump made it clear on Friday that he has not agreed to roll back any tariffs on Chinese goods.  Little new information came out over the weekend.

Alibaba’s Singles Day (their response to Amazon’s Prime Day) had over $31B in sales in a weakening Chinese economy.  To put in perspective, that’s greater than the US shopping holidays of Thanksgiving, Black Friday, and Cyber Monday and the weekend between all combined.

The NY Dept of Financial Services will be investigating Goldman Sachs (GS) for sex discrimination in their algorithms for setting Apple Card credit limits.  Tweets by web developer David Heinemeier Hansson revealed that he received an Apple Card credit limit 20x higher than his wife even though she has a higher credit score.

Earnings include TME, GO, and DFRG.

No economic data scheduled on this Federal holiday.  The Fed’s Rosengren speaks in Europe @ 8:15am ET.

Size bias is a divergent long on light Globex volume.


 Posted by at 6:47 am

11/08/2019 ES Trade Plan Worksheet

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Nov 082019

White House economic advisor Larry Kudlow confirmed Thursday’s reports that the US and China agreed to roll back tariffs on each other’s goods in stages as trade negotiations continued.  Kudlow sad “IF there’s a phase one trade deal, there are going to be tariff agreements and concessions.”

Meanwhile trade advisor Peter Navarro told Fox Business “There is no agreement at this time to remove any of the existing tariffs as a condition of the phase one deal and the only person who can make that decision is President Donald J. Trump and it’s as simple as that.”

Walt Disney (DIS) is up over 5% premarket on the success of “The Lion King” and “Toy Story 4”.  CEO Bob Iger said they have spent the last several years transforming the company to an extraordinary direct-to-consumer experience and Disney is excited to launch the Disney+ streaming service on November 12.

Activision Blizzard (ATVI) the company behind the “Call of Duty” and “World of Warcraft” gaming franchises is down over 1% after beating expectations but lowering fourth quarter guidance.  They will be introducing mobile and free-to-play versions of their franchises with the goal of increasing audience sizes and monetization.

The Gap (GPS) is down over 9% after missing expectations and lowering projections.  Their 15-year CEO Art Peck will be stepping down.

Alibaba is looking to raise more capital with a $15B share offering on the Hong Kong exchange.  The offering would make Alibaba the largest market cap company in the world.

Earnings include DUK, REV, and SSP.

The economic calendar is light with Consumer Sentiment, Inflation Expectations, and Wholesale Inventories @ 10:00 am ET.

Volatility is shrinking and should remain muted to the upside.

No Size bias as Globex Size volume is light.


 Posted by at 6:50 am

06/05/2019 ES Trade Plan Worksheet

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Jun 052019

Fed Chair Jerome Powell reinforced Fed’s James Bullard’s remarks that trade wars with China, Mexico, and the EU put a dark cloud over the US economy.  Powell said yesterday “as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective.”  Fedwatch now places the probability of a interest rate decrease at 53% for July.

Presidential candidate Sen. Bernie Sanders will be crashing Walmart’s annual meeting at the invitation of WalMart workers.  He expected to push Walmart to raise wages higher than the $11/hour minimum wage.

Earnings today include FIVE, AEO, GILL, CPB, CLDR, SFIX, MDB, and UNFI.  The economic calendar is full with focus on the 8:15am EST ADP and 10:00am EST ISM Non-Manufacturing PMI.  Also on the calendar are Final Services PMI @ 9:45am EST, Oil @ 10:30am EST and Beige Book @ 2:00pm EST.

Fed speakers include Vice-Chair Clarida @ 9:45am EST and Bowman @ 10:00am EST.  Volatility is up again due to yesterday’s Fed induced rally.  US stocks had their largest move in over 5 months.  Size bias is long into the US session open.


 Posted by at 6:08 am

06/04/2019 ES Trade Plan Worksheet

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Jun 042019

A Fed rate course reversal???  St. Louis Fed President James Bullard said yesterday that a “darkened” global trade narrative could slow the growth of the US economy, followed by a “downward policy rate adjustment may be warranted soon.”  The bulls sent US stocks up into yesterday’s cash close.

Markets will be watching Fed speak closely this morning: John Williams @ 8:30am EST and Chair Jerome Powell @ 9:55am EST.  CME futures predict a 50% chance of a rate cut in July with 2 more before 2020.  That would be quite a reversal in Fed policy…

FAANG companies are in US lawmakers’ crosshairs.  A House Judiciary committee announced a top-to-bottom review of US tech companies and the DOJ and FTC announced they would tackle large monopolistic companies such as Alphabet, Apple, Amazon, and Facebook.

Dem David Cicilline of RI said “The growth of monopoly power across our economy is one of the most pressing economic and political challenges we face today…  market power in digital markets presents a whole new set of dangers.”

In the same vein, Apple announced they will be killing iTunes and instead split music, podcasts, and TV into separate apps.  Earnings today include CRM, AMBA, GWRE, CBRL, GME, TIF, LE, HQY, and NAV.

The economic calendar is light with Factory Orders and Constructions Spending @ 10:00am EST.  Volatility continues to tick up and if Powell hints at decreasing rates, the ES could move today.  Size bias is a divergent short into Bullard’s 8:30am talk.



 Posted by at 6:19 am

04/19/2019 Good Friday Holiday

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Apr 192019

US stock and futures markets are closed today for Good Friday.  We’ll resume posting on Monday, April 22.  Enjoy the long weekend!

 Posted by at 5:37 am

04/17/2019 ES Trade Plan Worksheet

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Apr 172019

Earnings came in strong yesterday with most beating expectations.  The most notable exception was IBM who beat earnings but missed on revenue.  IBM stock is down over 2.5% premarket.  Netflix also beat but lowered forecasts for new subscribers which sent their stock down around 1%.

Qualcomm (QCOM) stock jumped over 20% yesterday and is up another 5% this morning after they announced a settlement with Apple over technology infringements.  Apple will switch to Qualcomm from Intel for their 5G technology.  A few hours after the announcement, Intel announced they were getting out of the 5G modem business.

Earnings focus today include MS, PEP, AA, ABT, USB, BK, LVS, and TXT.

OPEC is holding their bi-annual meeting today.  Economic data includes Trade @ 8:30am EST, Inventories @ 10:00am EST, Oil @ 10:30am EST, and the Fed’s Beige Book @ 2:00pm EST.  The Fed’s Bullard speaks @ 12:45pm EST.

Volatility continues to contract as the bulls try to push higher.  Volatility is most likely to increase to the downside.  Reaction to earnings will set today’s tone.  Like yesterday, Size bias is a divergent short going into the US session open.


 Posted by at 6:48 am

12/04/2018 ES Trade Plan Worksheet

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Dec 042018

Confusion and doubt are creeping into the markets over exactly what was accomplished during Trump and China’s Xi Jinping over Sat dinner’s trade talks.  The WH economic advisor Larry Kudlow tried to detail specifics from the meeting but only conflicted with trade talk information released by the Chinese.  The start date of the 90-day truce is in question as Kudlow says it’s Dec 1 and China said it was Jan 1.  With no agreement written down and signed, markets are a little nervous.  Meanwhile yields between the 3 and 5-year note have inverted for the first time in over 10 years suggesting that the US economy is slowing.  Nothing of significance on today’s US economic calendar.  The Fed’s Williams holds a press conference @ 10:00am EST.  Earnings include TOL, DG, AZO, MRVL, and HPE.  Volatility remains elevated, however could shrink into today’s US close as US stock markets will be closed National Day of Mourning for former US President George H.W. Bush.  Size bias is short on lighter Globex volume into the US session open.


 Posted by at 6:51 am

05/23/2018 ES Trade Plan Worksheet

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May 232018

US and global stock markets are a little rattled by Trump comments concerning a scheduled June 12 Singapore meeting with North Korea and US trade war progress with China.  The US and South Korea held a joint military exercise last week and now Trump is saying there’s a good chance the North Korean meeting will not take place on June 12, but still a good chance it will at some point in the future.  About the trade negotiations with China, Trump said it’s “a start” but he was “not pleased” with the progress.  US retailers Target and Lowes missed earnings estimates while jeweler Tiffany & Co. crushed their expectations.  The economic calendar focus is Oil @ 10:30am and Fed minutes @ 2:00pm EST.  Before the main events, we have PMI Composite Flash @ 9:45am EST and New Home Sales @ 10:00am EST.  The ES has pulled back enough where upside volatility should not be hindered as we’ve experienced over the last week.  Volatility continues to contract, but there’s more room to expand now.  Size bias is short on increased Globex volume into the US session open.


 Posted by at 7:46 am