Panic Selling? U.S. Equities Open Will Tell The Tale

Posted Wednesday, August 9, 2017 by
Shain Vernier • 2 min read

To say that tensions are “high” between the U.S. and North Korea may be the understatement of the year. North Korea’s insistent testing of ICBM technology and military posturing has certainly got the attention of President Trump.

Promises of U.S. retribution through the delivery of “fire and fury” came to the forefront yesterday sending traders clamoring for safety. As covered by my colleagues Rowan, Arslan and Skerdian, there has been a sentimental shift towards safe-haven assets in the overnight.

As of this writing, here is what we have seen:

  • Rally in December Gold futures, up over 100 ticks

  • Heavy buying in September Silver futures

  • Bullish pressure for September WTI Crude Oil, up 30 ticks

  • Large volumes driving U.S. 10-year and 5-year Treasury notes higher

  • Pronounced sell-off in the USD/CHF

  • September E-mini S&P 500 futures under pressure

The articles available at written during the U.S. overnight pretty much cover the impact of the current U.S./North Korea standoff on the forex and safe havens markets. Now it is time to look towards what is in store for the U.S. session.


Panic Trading

Volatility is typically a good thing for short-term traders. However, today I will be reserved while watching the NYSE equities open with piqued interest.

E-mini S&P 500September E-Mini S&P Futures, 60-Minute Chart

As of now, the September S&P futures contract is under serious duress. Investors are skittish amidst the threats of a nuclear conflict, and rightfully so. Ultimately, only time will tell. The equities open at 9:30 AM EST will tell us a lot about where we are headed in the short-term. For now, I am taking a wait and see approach.

The E-mini S&P 500 futures contract is a great barometer for sentiment facing U.S. markets. The S&P 500 can also be traded using CFDs. Check out signals for trading ideas facing the most popular CFDs based on the U.S. equities market.

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