Bye-Bye Wall Street...Hello Miami!

ES Has a bad Thursday streak...

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Our View

The well-known head of JP Morgan, Jamie Dimon has been rallying hard to get employees back into the bank's office. But it is not just JPM, it is most of Wall Street's big brokerage firms and banks too. 

The problem? No one wants to go back into the city to work — in fact many moved out of NY, Chicago, and LA to the suburbs or to other states. They see what's going on in the big cities and guess what? They are not coming back...no way, no how! 

The exchanges are gone for the most part and the only pit left at the CME group is outside the elevator banks of the old trading floor. It is what I call the “cause and the effect” of the COVID-19 pandemic hangover.

Regardless of who you voted for when Ken Griffin closed his Chicago offices, it wasn't just the traders who worked for him that it affected — it affected the entire city of Chicago!

The hedge fund founder donated $130 million to 40 Chicago organizations. So far 160 Wall Street firms have moved their headquarters out of New York, with most going to Florida since the end of 2019, taking nearly $1 trillion in assets under management with them, according to data from 17,000 companies compiled by Bloomberg. 

Griffin said he thinks Miami “represents the future of America.”

Ever since Globex traded its first contract, I have been saying that we live in an ever-changing world. Everything is evolving so fast; the 2008 Credit Crisis did its damage to Wall Street, shutting down trading desks and entire departments, and thousands losing their jobs. It bounced back only to be destroyed by the Covid-19 pandemic.

I made a lot of correct predictions after Covid-19 and I was right on almost all of them. One was that the big cities would never recover — how can you reverse something like this? You can’t!

Look at this example, or this one

These are just two of many examples. 

Our Lean — Danny’s Trade

This is Danny Riley’s personal trading plan for the day.

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MiM and Daily Recap

The ES traded up to 4541.25 on Globex early Wednesday morning and traded 4523.75 on the regular session open. After the open, the ES traded up to 4530.50, sold off down to 4516.75 at 9:54, and then rallied up to a 4536.75 new high and double top, and then pulled back to the 4528.50 level at 11:18. The ES then sold off down to 4518.25 at 12:15, back-and-filled until 12:58 when the ES started hitting stops under 4518.00 down to 4510.75 at 1:18, rallied up to 4529.50 at 2:43 and then started to drift lower. 

The ES traded 452?? as the 3:50 cash imbalance showed $971 million to sell, dropped down to 4514.75 at 3:56 and traded XX at 4:00. After 4:00, the ES rallied up to 4520.75 and then sold off down to 4512.00 at 4:59 and settled at 4514.00 at 5:00, down 0.50 points or -0.01% on the day.  

In the end, the ES rallied hard on Globex, rallied and sold off several times in the day session, and closed near its lows for the day. In terms of the ES's overall tone, there was a lot of two-way flow. In terms of the ES's overall trade, volume was steady: 338k traded on Globex and day session volume was 1.194 for a total of 1.532 million contracts traded. 

Technical Edge

  • NYSE Breadth: 69% Upside Volume 

  • Nasdaq Breadth: 66% Upside Volume 

  • Advance/Decline: 55% Advance 

    • a 90/90 NYSE breadth/Advance-Decline day. 

  • VIX: ~14

S&P 500 — ES Futures

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Economic Calendar

Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.
Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!

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