The time has finally come for the big guns to resume trading after the summer holiday. Now is the time of year when the big hedge funds and top traders begin ramping up their position size. What does this mean for you and me or any other traders pushing around less than 100 lots on the ES, more participation, a more technical market, and more follow through.
Futures Trader: Tomorrow is rollover meaning the volume for the contract month will shift from the current expiration month September (U) to December (Z). Make sure to update your charts and execution platforms accordingly.
Options Trader: Since tomorrow is rollover this means next week is Options Ex. Any new positions should be taken in the months of October and later unless your strategy involves selling premium.
Stock Trader: More volume equals ease of entry and exit for those smaller less liquid stocks.
Our short term outlook is a move down to 1072 at which point we will either bounce and move higher, or sell off to new swing lows and potentially beyond. It’s time to ramp up the trading into the end of the year, so get ready for a wild ride.