This Week Should Be Volatile Despite the Mild Monday Start

This morning, the S&P 500 Index e-mini futures (ES-U2) are trading lower by 1.00 point to 1401.50 per contract. Often, the start of the trading week will be somewhat on the light side when it comes to trading volume and volatility. The markets should pick up in activity as the week goes on, this Friday will be options expiration. During the trading week leading up to options expiration the large institutions will usually play a lot of games with the popular stocks. Leading stocks such as Green Mountain Coffee Roasters Inc (NASDAQ:GMCR), Netflix Inc (NASDAQ:NFLX), and First Solar Inc (NASDAQ:FSLR), are just a few that will usually be very volatile this week.

Last night, the important Shanghai Index (China) finished the trading session lower by 1.50 percent. China is still considered the growth engine of the world, however, its stock market is telling us differently. If the U.S. markets are weak today this tells us that the Chinese ADR’s could be vulnerable to declines. On the flip side, if the U.S. markets are strong today then the Chinese ADR’s are likely to hold up. Traders should keep a close eye on the iShares FTSE/Xinhua China 25 Index (ETF) (NYSEARCA:FXI) to see how the majority of the Chinese ADR’s are trading.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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