Home Morning Commentary Morning Commentary – Volatility

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Wednesday was surely a day of high volatility across nearly every major market.  The ES futures made new all-time highs.  The Dow did as well, and almost hit 24,000. The Nasdaq, on the other hand, was smashed.  Oil was extremely volatile shortly after its weekly storage data hit the tape…and Bitcoin action was in a word: insane.

Shortly after the open, the S&P futures (ES) made new all-time highs with a print over 2634.00. As mentioned above, the Dow futures (YM) rallied to new highs and the word on the Street was “24K before the close.”  That didn’t happen yesterday, however, the YM did trade North of 24,000 Thursday evening, so the milestone has been reached.  Staying with the equity futures, the Nasdaq (NQ) was, by comparison, destroyed.  A “tech wreck” was in the making.  By the time the market had closed, the NQ had lost over 1% of its value with very volatile swings beforehand.  For the experienced trader, it was amazing.

Oil has been volatile as well because the market is expecting an oil-cut extension.  The question is, however; Will the market rally on the extension or drop because it is already priced in?  We will find out the answer in Thursday trade, because according to Bloomberg, a deal has been reached.  OPEC has agreed (unofficially as of this writing) to extend the production cuts for another 6-9 months.

And then there’s Bitcoin.  In the morning the price of one coin was over $11,300 on several exchanges, which made major news.  The rejoicing of the crypto-world was heard throughout the land…for an hour or two.  When the selling began, it was relentless.  The price of one Bitcoin plummeted, on one exchange, BELOW $9,000, before it recovered.  

When the CME opens a futures market for this product, the trading of that derivative will be very interesting!

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