Hot Rolled Futures: Risk Off

The following HRC futures article is written by Andre Marshall, CEO of Crunchrisk, LLC and the instructor of our new Managing Price Risk 2 – Strategies & Execution workshop.

Well the S+P 500 took a turn down starting Thursday and Friday of last week, dropping from 1850 down to a 1770 low yesterday. We have recovered a tad today, last 1794. One can never tell what triggers a market to sell off, if you can call 4.3% a sell off. It might have been the miserable jobs report, or concerns coming out of China concerning their growth and the banking system there, or the continuing tapering by the Fed. Take your pick. Usually a market will have been well overbought when it decides to find excuses to sell off. From here, the S+P will need to breach 1810, the mid-way point of the fall, to find legs to test the 1850 level again. If it fails then we are headed to 1720-1750 as initial support.