Thursday, March 7, 2024

Another Horror-Story of a Contract Roll

Below is a daily side-by-side comparison of the roll-over ES futures contract versus the current month only. It's another horror-story of a contract roll-over with fully 60+ points premium in the new contract versus just the current month contract.


The red arrows show the opening price for the next day. Regardless of the Elliott-Wave count, this is a bonkers situation which really needs investigation as it is largely unexplained and getting worse as the months progress. The prior roll-over on this platform was in excess of 55+ points. A typical roll-over in prior years was 12 - 15 points.

Have a good start to the evening,

TraderJoe

30 comments:

  1. Select the B-ADJ button on the bottom right of the chart and it'll fix this contract rollover issue.

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    Replies
    1. There's nothing to 'fix'; that is the actual price of the next contract. Someone is willing to pay a 60+ point premium. TJ.

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    2. Because we have reached a permanently high plateau.

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  2. Last draw finished yesterday and prog ends March 11th.

    https://fred.stlouisfed.org/series/H41RESPPALDKNWW#0

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    Replies
    1. Correct, as long as it is not renewed. TJ.

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    2. You can read Fed's mind.

      https://www.frbservices.org/news/communications/022024-ending-bank-term-funding-program#:~:text=Federal%20Reserve%20Board%20Announced%20Ending%20of%20the%20Bank%20Term%20Funding%20Program,-February%2020%2C%202024&text=On%20January%2024%2C%202024%2C%20the,scheduled%20on%20March%2011%2C%202024.

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  3. We're getting closer to the proposed ECD not having the "right look"

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  4. Tj,
    Could the rollover contract be the Ending Diagonal Count with overthrow,
    and if falls again, would confirm this pattern?

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    Replies
    1. What most technicians would want to see is known as an outside-key-reversal day to make any longer-term decisions. Also see 11:07 am, below. TJ.

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    2. Bearish engulfing pattern currently in place for cash. The underlying tone of Payroll report was more weakness, jobless rate up 0.2% and prior 2 months revised down 175k.

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  5. Looks to be getting mature.

    https://imgur.com/rRJvGPG

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  6. One the larger scale. This is still my preferred count. We are in between the 1.27 and 1.38 of a, a good place for a b wave. B waves are also called bullshit waves.

    https://imgur.com/Wi22hpU

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  7. ES futures - the current month contract has clear downward overlap. Caution warning activated. In cash, this count is ⑤ = ①.

    https://www.tradingview.com/x/sMWGdFDP/

    It agrees with BBR's futures count.
    TJ

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    Replies
    1. I think its nickels in front of steamroller time.

      https://imgur.com/em1mtCX

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    2. SPY 2-hr: first gap at the high filled. Might be an inverted hammer or gravestone doji. Requires confirmation. Futures retrace from this morning's low > 65% at the moment.

      https://www.tradingview.com/x/rLrzMaTn/

      TJ

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  8. For all the AI and Fed blah blah blah, this was always turning towards the right, dying in the channel, and declining EWO the whole way.

    https://imgur.com/CkrDcNA

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  9. Speaking of which, NVDA has probed below the e wave on this chart from a few days ago.

    https://imgur.com/4WkSP5j

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  10. ES Mar contract, now below the Payroll Report low. TJ.

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    Replies
    1. So, we have the first sign of a 'motive' wave, lower - the ability to break a prior low. Now, if-and-when it retraces, there needs to be a retrace that does not go over the high. TJ.

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  11. ES 8-hr: here is a potential diagonal ⓒ wave count that was studied last night, after the horror of the roll-over contract was noted. It is made possible by the overlap in the futures at 5066.

    https://www.tradingview.com/x/bYtvUcB8/

    As far as I can tell, this count does not apply to cash as the same overlap does not exist, but I will look again. Further, again, we still need a retrace that does 'not' go over the high.

    TJ

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    Replies
    1. I suspect the drop is the first portion of a larger b wave in ED (5).

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    2. Pedro, wouldn't that make it an "Ending Expanding Diagonal"? These are supposedly "extremely rare":
      https://worldcyclesinstitute.com/trader-resources/trader-ending-expanding-diagonal/

      But perhaps something like this?
      https://www.tradingview.com/x/zZVWF8rC/

      Note to TJ: apologies if my wave labels are all wrong! This example is merely a speculative count, for the sake of discussion. 😁

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    3. That's the same as the cash count I showed earlier. Not sure why it is repeated here. TJ.

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    4. Again, apologies for posting my running speculative wave count.

      I was just trying to make the point that Pedro's suggestion would imply an "Ending Expanding Diagonal" pattern. 🤔

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    5. No. Because 1) there can not be flat numbered waves in a diagonal, and 2) because Wave four has to be longer than Wave two in a diagonal, and it is not. TJ.

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    6. Thanks for the clarification, TJ!

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  12. This comment has been removed by a blog administrator.

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    Replies
    1. As I said, nonsense counts that don't follow the rules will be deleted. TJ.

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  13. A new post is started for the next day.
    TJ

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