Anyone know why the selloff at 3pm?

Most of the action came out of the S&P pit yesterday!
Locals were pushing it lower and when they got a 1532.50 print they got widespread paper selling going. That's what cause the sell off from 1532.50 to around 1525.00.

Later around 14:48 chicago time there was a paper filler with 500 cars on the bid (big contracts), locals sized'em up and sold them for another push lower into the cash close. Merril sold 1000 big contracts on the cash close, locals bought it back.

The pit was leading the mini! Believe it or not. Merrill was offered at 1525.20 then he came in offered at 5 even while the mini was still 5 bid. He then came real aggressive offered at 4.50 while the mini was still 5 even bid, and then came down to 4.50.

Merrill has been buying the open and cash close for many days in a row, and now he sold big time. I'm expecting a move lower!

-SL
 
Quote from stktrdr:

And here we have the taste of new highs. The next time I post I expect it will be to update ya'll on what will be called the "Memorial Day Massacre of the Bulls"...
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Next stop for the dow cash..........13300. Could see it by Friday close. Next week will be ugly......you have been warned.
 
That was high energy selling on the way down. Two locals got absolutely hammered BIG TIME. And they're still stuck right now. One local has been on a push. And everytime he printed the low paper came in selling it hard.
 
Quote from ScreenLocal:

That was high energy selling on the way down. Two locals got absolutely hammered BIG TIME. And they're still stuck right now. One local has been on a push. And everytime he printed the low paper came in selling it hard.
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There were a bunch of folk who bought the breakout in the dow futures after the housing figs.... many still holding....
 
Quote from stktrdr:

There were a bunch of folk who bought the breakout in the dow futures after the housing figs.... many still holding....
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Well, those locals are not in it because of a good figure. He tried to hold the market a bid and got slammed by a paper seller, who immediately sold it down another 2 points, which caused more selling. And if he would sell his position then, he would push the market even lower. right now he's cost averaging. The guy has got deep pockets. He's a top 10 local locals there!
Paper is selling it before the long weekend. Because they have been selling it from the highs into the buying! So the smart money is selling!

-Dave
 
Quote from smilingsynic:

Of course you didn't. If you had, you'd have had no money left after buying every dip, and you wouldn't be here.
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The 2000 bubble burst stocks were trading with PE ratios of 100+. The vast majority stocks were bid too high. Interest rates were going up. It was insanity.

The DOW and S&P fared very well though. Anyone who held on to speculative tech crap during the collapse deserved to lose money for being so stupid when it was obvious they were going lower.
 
Quote from stock_trad3r:

The 2000 bubble burst stocks were trading with PE ratios of 100+. The vast majority stocks were bid too high. Interest rates were going up. It was insanity.

The DOW and S&P fared very well though. Anyone who held on to speculative tech crap during the collapse deserved to lose money for being so stupid when it was obvious they were going lower.
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Your take on history is not accurate. I was there, so let me recap:

From 2000 to 2003, the S&P was cut in half. Even quality blue-chip tech stocks such as CSCO and INTC were decimated. Holders of QQQQ lost 4/5 of their money.

My point: buying and holding Nasdaq stocks, and then adding more on dips (i.e. YOUR approach), may work most of the time. It certainly works right now. But if one does not have a strategy on when to take profits and limit losses, one will eventually be a loser. Guaranteed.

I know you won't listen, but at least I tried.
 
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