Rollover

Follow us:      Share this content:     Rollover   Thursday begins the S&P500 futures rollover. This is when traders switch from September (the current contract) to the next contract month, which is December. Stock futures trade quarterly. Although December is now "top stop," we will continue to trade September through Friday unless otherwise stated. Rollover is normally an unfriendly trading environment because traders gradually switch from one quarterly contract to the next. With volume spread between two contracts we often see a small choppy range, which unfortunately seems normal these days. There was no news Wednesday and other than a 30-YR Bond auction Thursday, there will be no news. Friday is a different story; there are four scheduled important reports. Because of the recent 7-day rally, the lack of news, and the rollover, Thursday's trade could be another very slow day. ---Larry Levin       In conjunction with TheStreet.com and Bar Chart, Trading Advantage Chief Market Strategist Alan Knuckman  provides a daily morning update on the global action in stock futures, gold, oil and interest rates.       Congratulations to Jim Capuano Congratulations to our student of the day Jim Capuano who had a successful day trading the ES on Wednesday and then was able to take the afternoon off to head to the golf course. The markets were choppy but Jim was able to stay disciplined and stake to the methodology. Congratulations Jim! NOTICE: Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. The average reader should not necessarily expect the same or similar results. Past performance is not necessarily indicative of future results. No person was compensated for providing a testimonial.     OPTIONS: Volatility Commentary ---Michael Shorr There are a lot of things that seem to have the market in a bit of a stranglehold right now.  What the heck is going to happen in Syria?  Who is going to be the next Fed Chair(person)?  Will Obamacare stunt any of the efforts to stimulate the economy?  The VIX is sub 14 as well.  This is not the time to make aggressive moves.  The costs of being wrong far outweigh the benefits of being right.  One play that we would like to make is some bullish play on Crude Oil.  Oil has continued to make new highs yet there are many factors that could send the commodity higher.  One being a strike on Syria and the second being increased productivity and expansion of the US and global economy.  Like we said earlier, an outright long seems too aggressive.  How about finding an undervalued security and constructing a spread?  Let's use XLE (Energy Sector ETF) as the proxy for the energy sector.  It's price on the first day of trading 2013 was 73.62 and is now trading 84.36.  That's an increase of 14.6% this year.  Exxon Mobil (XOM) is up a whole $0.05 this year (unchanged).  If we are bullish oil but want to take advantage of an undervalued stock, we should buy the XOM Oct 90 Call and sell the same amount of XLE Oct 90 Calls for a bullish play on oil with very little premium outlay that has little to no exposure in overall vega.     FOREX: Currency Spotlight ---Charlie Lewis   The diamond in the currency rough is the UK,whose economy is responding brisky to the low interest rate environment provided by their Central Bank.Capacity and Utilization measures are close to or surpassing 13 year highs,and construction orders are encouraging further commitments to plant and equipment. And a perusal of their currency chart indicates that recent highs have been breached to the upside decisively today,with targets in the region of 1.61 now coming into vision     STOCKS: Watch List ---Charles Moon   After a slight drop at the open of the trading session, the markets rebounded off the lows of the day and slowly pressed higher. The trading conditions were flat for the most part, even though the markets did move in both directions. Once again for the second day in a row, the markets closed almost at the high price of the day. For the short term here, the markets are bullish and since the crossover of the 50 Day Moving Average, the SPX has not looked back at all. With sellers staying away over fears of getting run over by buyers, this has been an easy rally here as of late. I expect more of the same tomorrow and it is Friday I expect the markets to pullback a bit. Not saying it can't happen tomorrow, it is more likely to drop then make another move higher. If the markets drop on Friday, it would most likely be due to profit taking throughout the trading session. The resistance at 1700.00 in the SPX is more likely to get tested then the 50 Day Moving average at 1669.72 in the next few days. Play according to market conditions, and you will have a greater chance of success then going against the grain. The Nasdaq had taken the biggest hit due to the streets being displeased with the Apple Inc(AAPL) announcement yesterday on their new phones. Apple(AAPL) opened up down over 20 points and was held from falling further by finding support at a key technical level. Widely known as the "Death Cross" this level of support is when the 50 Day and 200 Day Moving Averages cross over. It generally is used as a key support or resistance level and AAPL found support at this technical level today. Buyers can be reliant on playing longs in the market off this technical level, but faces the danger of a gap down open below the level tomorrow. Most likely the technical level will become resistance and if resistance is found, the progression to the downside can carry further. AAPL has been a disappointment once again, and the streets are speaking loud and clear. Open Position: FB Stocks to Watch: INTC AAPL GOOG IBM AMZN BIDU LNKD FB TSLA GRPN CTXS CSCO NTAP JBL BAC PRU WFC GS JPM MS NFLX WDC DIS CROX STZ NKE UA LULU CHKP JNPR POT GMCR VZ T HOG MON YUM MCD LOW HD LEN TOL V MA AXP DFS LVS MGM       FUTURES: Technical Data       ES 1687.00 / 1680.00  POC… 1685.25  YM 15293 / 15219  NQ 3177.50 / 3165.00 NOTES FROM THE PIT Click here to read     COMMODITIES: Play of the Day ---Patrick Assalone   Gold mostly traded sideways Wednesday with the market contained in a large High Volume Area. Based on our educational methodology, we are looking for continued sideways trading until the market breaks out of this range. Therefore we would look for reversal signal opportunities off of the HVA from 1338 to 1357.50. Click here to watch video   is a leading investment education firm that empowers traders to achieve and surpass their financial goals. More than 50,000 students have used Larry Levin's proven techniques for powerful results.   IMPORTANT NOTICE: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of future results. Trading Advantage LLC provides only training and educational information. By accessing any Trading Advantage content, you agree to be bound by the terms of service. Click here to review the terms of services. DAYTRADING involves high risks and YOU can LOSE a lot of money. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those talked about in our site.

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