The Key Market Divergence To Watch Tomorrow

An often overlooked piece of information for people trading the futures markets is contract rollover. A lot of people don’t realize that our brokers push us to the front month’s contracts even though the volume might not be there. The last one started in December and ends in March. The current bar in the NASDAQ March contract has almost 6000 contracts.  At the exact same 5 minute period in the NASDAQ June contract it has around 500 contracts. That is roughly 12 times more volume in the old month.

Most of you guys have already been rolled into the June contract. That could easily lead to slippage. The volume should start to roll into the June contract tomorrow. Until it does, I will stay with the March Contract.

The RUSSELL did not follow through the whole day. We have been down below the open for most of the day. It has been a red bar. Some of my great trade alerts and the strategies in my room have revolved around the RUSSELL lately. For instance, if we wanted to go long in the NASDAQ we would want the RUSSELL to be strong.  You can see we had a split decision between these two. The DOW was no help. It was at the midpoint of the channel today. The S&P was at the top end of the channel.

I want to see if the market can shake off the tariff announcements. I want to see if we can close out the week strong. I want the NASDAQ to continue to power up. The S&P needs to get above the top end of the channel.  The DOW needs to get above the midpoint of the channel. Shorting below could be more troublesome. The favored trade would be to continue looking for longs.  This is on an intraday basis.  I will talk about some more swing trading concepts next week.

I look forward to seeing everyone in tomorrow night’s videos or in the Live Trading Room tomorrow!

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