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00:00THOSE FINANCIALS. LET ' S GET INTO TARGET FUTURES -- CHARTING FUTURES. > > IS ALL ABOUT TRADE. LET ' S LOOK AT AND OVERNIGHT CHART. THIS SHOWS THE IMPACT OF THE TRADE HEADLINES TODAY. OVERNIGHT DURING THE ASIAN SESSION, FUTURES BASICALLY FLAT. AROUND THE TIME OF DONALD ' S BETWEEN SAYING A DEAL COULD BE AHEAD, LOOK AT THAT HUGE SPIKE HIGHER. OTHER MORE THAN 1%. BEST DAY SINCE NOVEMBER . AS REALITY SETS BACK IN, SO MANY HEADLIGHTS, S & P 500 FALLING BACK DOWN. THE MOST RECENT HEADLINES, A DEAL COULD BE EMINENT, .7% . IT IS NOT A 1% MOVE. THAT HAS BEEN THE STORY FOR A WHILE. MORE THAN 40 DAYS WITHOUT IT PERCENT MOVE. THAT IS THE LONGEST STRETCH SINCE THE SUMMER OF 2018. THAT PROCEEDED WHAT HAPPENED IN OCTOBER. THOSE MONTHS OF SMALL MOVES WERE FOLLOWED BY SEVERAL MONTHS OF HUGE MOVES, MAINLY TO THE DOWNSIDE IN THE FOURTH QUARTER OF LAST YEAR. WHEN IT IS STRETCH OF SMALL MOVES DOES BREAK, IT SEEMS VOLATILITY BREEDS VOLATILITY. WE COULD BE BACK INTO A PERIOD OF THE BIG MOVES. THIS SEEMS TO BE DRIVEN BY TRADE. SOME OF THAT DRINKING TRADE WAR AND HEADLINES, INVESTORS TEND TO GET BULLISH AND VERY BEARISH ON BIG MOVES. ERIC: A CLEAR INDICATION THE MARKET DOES MOVE INTO DIRECTIONS. IT IS SENSITIVE TO TWEETS. YOU SHARGH -- YOU SHOW THE CHART WITH NO VOLATILITY. ONE MINUTE THERE IS VOLATILITY, ONE MINUTE THERE IS NO VOLATILITY. > > BEFORE WE TAKE A LOOK AT YOUR CHART THAT SHOWED -- LET ' S TAKE A LOOK AT YOUR WEEKLY CHART OF THE S & P 500. WHAT MAKE THIS CHART INTERESTING , THE FACT THAT IT -- THERE WAS A PERIOD OF RELATIVE CALM 12 MONTH IN A ROW. THEN VOLATILITY, THAT WAS AROUND THE BEGINNING OF THE TRADE WAR WHEN PRESIDENT TRUMP MARKET WASHING MACHINES AND SOLAR PANELS COMING FROM CHINA. ERIC: 12 MONTHS PROCEEDED TARIFFS, CORRECTION IN THREE DAYS. FIVE OR SIX MONTHS OF GRINDING HIGHER. WE DROPPED 20% IN THE LAST QUARTER OF LAST YEAR AND IT HAS BEEN A GRIND HIGHER. THESE ARE 8% OF DRAWDOWNS, ONE IN ONE WEEK, ANOTHER IN THREE WEEKS. THERE IS VOLATILITY THAT NO VOLATILITY. > > THE CURRENT MOVE UP, THAT HAS BEEN THIS HOPE AROUND A PHASE I TRADE DEAL, WHICH WE MAY BE GETTING CLOSER TO HAVE ACTUALLY SIGNED. DID YOU THINK THIS IS THE START OF A NEW AREA SIMILAR TO 2018 R.O.E. GOING BACK DOWN? ERIC: I AM CONCERNED. HAVE HAD TWO CONSECUTIVE UP WEEKS. WE HAVE NOW ALSO AREA SIMILAR HAD TWO CONSECUTIVE UP WEEKS OF THE VICTORY IN THE FIRST 14 DAYS OF THIS MONTH, VIXEN PYRE AND S & P MOVE HIGHER. THAT IS WHAT HAPPENED IN JANUARY 2018. A 5% INCREASE IN THE S & P. AND THE VIX CLIMB HIGHER. > > THAT IS A TERRIFIC INSIGHT. THANK YOU FOR JOINING US.

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Volatility Breeds Volatility in S&P E-Mini Futures

In this edition of "Charting Futures," 3D Capital Management President Eric Dugan examines S&P 500 e-mini futures with Bloomberg's Abigail Doolittle on "Bloomberg Markets: The Close." (Source: Bloomberg)

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