Outlook 12/20: U.S. stock futures rose to all-time highs on Thursday, with the SP500 index pushing past 3200 for the first time, after Treasury Secretary Steven Mnuchin said the U.S. and China would sign their "phase one" trade agreement in early January. However, there wasn't much movement from futures overnight, as traders begin winding down their books in the days leading up to the year-end holidays.
/ESH20 Value: YVAH 3212 YPOC 3207 YVAL 3200 GAP 3111.75
/ES Plan: Yesterday market closed bullish (PBT 3219) leaving a bimodal profile (LVN 3204). Overnight action continues on that way, moving above yesterday's value, so today's options:
A) If market remains above LIS YVAH 3212 with bullish internals, buy towards ONH 3215.75 and PBTs 3219-3220.
B) If market moves below LIS YVAH 3212 with bearish internals, sell towards ONL 3208.50 LVN 3204 and YVAL 3200.
Note: Today is Quadruple Witching, a date that entails the simultaneous expiry of stock index futures, stock index options, stock options and single stock futures. Much of the action surrounding futures and options on quadruple witching days is focused on offsetting, closing or rolling out positions, as well as arbitrage trades, which tends to stir up bursts of trading volume. Usual strategies are most likely to be less effective.
Today's Economic Calendar
10:00 Personal Income and Outlays
10:00 Consumer Sentiment
11:00 Kansas City Fed Mfg Survey
01:00 PM Baker-Hughes Rig Count
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