Tonights Commodity & Equity Index Futures Correlations QQQ
Hello my fearless volatility riders as you can see the old ramp and crap trade is still going strong. I think this is the 4th Sunday night in a row the futures have traded considerably below where they settled on Friday afternoon.
The level in play in the NQ_F is 2400 which correlates to 1325 ES_F. If 2400 does not hold 1320 will be in play in the ES with 1322 being the low print of the session. When headlines rule a market momentum picks up as key levels break on the downside and or upside, in this case downside.
As our domestic debt issues weigh on the index’s we also have to worry about foreign debt issues clouding our view. The best way to trade this environment is trade what you see and not what you think, we have been seeing wild headlines which greatly affect currencies which in turn affect equity index futures. Learn from these correlations and hedge yourself accordingly.
As you can see from the charts above, they are all 1 min besides the nasdaq; index’s have a bearish feel. A lot can happen between now and morning, it my be your best bet not to place a trade ‘mid move’. Wait for further confirmations.