Can someone please explain to me...

E

easymoney85

Throughout the trading day the ES, NQ, YM get to such extreme price points I don't get who the hell is buying or selling. The only things I can think of is people are getting margined so they don't have a choice to get out at these points and/or algo's don't care where they buy/sell?

For example this past Tuesday 6/19 the ES got over 1350... it was just at 1270, who the hell is buying the ES over 1350 at that point? makes no sense

Another example today at the close the indices are down in a straight line why are you selling the NQ or ES down over 2% in 1 day??? Maybe the market will be down big tomorow I don't have know...I just don't get it other than margin calls and people have no choice.

I'm not complaining or bitter I actually made money these days and if it weren't for these extreme prices I wouldn't make $$... I'm not the best trader by far just curious more than anything... maybe someone can shed some light on this?
 
Quote from easymoney85:

Throughout the trading day the ES, NQ, YM get to such extreme price points I don't get who the hell is buying or selling. The only things I can think of is people are getting margined so they don't have a choice to get out at these points and/or algo's don't care where they buy/sell?

For example this past Tuesday 6/19 the ES got over 1350... it was just at 1270, who the hell is buying the ES over 1350 at that point? makes no sense

Another example today at the close the indices are down in a straight line why are you selling the NQ or ES down over 2% in 1 day??? Maybe the market will be down big tomorow I don't have know...I just don't get it other than margin calls and people have no choice.

I'm not complaining or bitter I actually made money these days and if it weren't for these extreme prices I wouldn't make $$... I'm not the best trader by far just curious more than anything... maybe someone can shed some light on this?
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De Kingfish, he say, "Do de word 'hedging' ring a bell, Sapphire?" As in market makers hedging option and stock sales? Das y yo sees big buy prints at the top and big sell prints at the bottom.
 
Quote from easymoney85:

Throughout the trading day the ES, NQ, YM get to such extreme price points I don't get who the hell is buying or selling. The only things I can think of is people are getting margined so they don't have a choice to get out at these points and/or algo's don't care where they buy/sell?

For example this past Tuesday 6/19 the ES got over 1350... it was just at 1270, who the hell is buying the ES over 1350 at that point? makes no sense

Another example today at the close the indices are down in a straight line why are you selling the NQ or ES down over 2% in 1 day??? Maybe the market will be down big tomorow I don't have know...I just don't get it other than margin calls and people have no choice.

I'm not complaining or bitter I actually made money these days and if it weren't for these extreme prices I wouldn't make $$... I'm not the best trader by far just curious more than anything... maybe someone can shed some light on this?
More...

I'm not sure I get this.
What do you mean you don't get who is buying and selling?
People who are trying to make a buck are buying and selling.
Maybe your trading consists of signals other people don't see and their trading consists of signals you don't see.
And, you may both make money.
1350 ES too high?
What does that mean?
Does that mean 1350 will never be broken through?

Trade what you see, not what you think.
 
That's a fair point, different time frames makes sense. That's why I asked to get other viewpoints.

I guess I look at trading with more of a pot-odds mentality...Perhaps a better way of phrasing it, is the pot odds are less in your favor when your buying the ES over 1350 when we were at 1270ish couple weeks ago.
 
Quote from easymoney85:

That's a fair point, different time frames makes sense. That's why I asked to get other viewpoints.

I guess I look at trading with more of a pot-odds mentality...Perhaps a better way of phrasing it, is the pot odds are less in your favor when your buying the ES over 1350 when we were at 1270ish couple weeks ago.
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Like you, more or less, say; it depends.
Different time frames, different profit targets, underlying market factors, different set of knowledge factors, etc., etc.

What you and I may see as odds being against us, someone else may know/see/understand something we don't.
 
Quote from easymoney85:


I'm not complaining or bitter I actually made money these days and if it weren't for these extreme prices I wouldn't make $$... I'm not the best trader by far just curious more than anything... maybe someone can shed some light on this?
More...

It's all about capital flows.

Money moves like a thunderstorm....... moist air goes up, temp gets lower, moisture precipitates out which further drives the motion, then finally it reaches the termination point when no one is left to buy....... and poof - major down draft.
 
Quote from easymoney85:

Throughout the trading day the ES, NQ, YM get to such extreme price points I don't get who the hell is buying or selling. The only things I can think of is people are getting margined so they don't have a choice to get out at these points and/or algo's don't care where they buy/sell?

For example this past Tuesday 6/19 the ES got over 1350... it was just at 1270, who the hell is buying the ES over 1350 at that point? makes no sense

Another example today at the close the indices are down in a straight line why are you selling the NQ or ES down over 2% in 1 day??? Maybe the market will be down big tomorow I don't have know...I just don't get it other than margin calls and people have no choice.

I'm not complaining or bitter I actually made money these days and if it weren't for these extreme prices I wouldn't make $$... I'm not the best trader by far just curious more than anything... maybe someone can shed some light on this?
More...

We're what, 8% off the ES high of the year? Whatever the exact number, what if your strategy gave you a sell signal when the market was down 8% from a major high and you were a big seller, so you could only sell in tranches? Well, you would have sold some the first time we reached these levels and now you sold more today. The fact that the market was down nearly 2% on the day when it reached your 8% trigger level is irrelevant, because that's not what drives your strategy. In an extreme example where there was an 8% down day right after a high, you'd be a seller then, too.

For almost any permutation of the ways in which the market can be quantified, there are buyers and sellers at those levels. That's what makes for a liquid market.

If these sales were only from traders who "have no choice", the market would fall a lot faster, as they rushed to the exits.
 
Quote from easymoney85:

For example this past Tuesday 6/19 the ES got over 1350... it was just at 1270, who the hell is buying the ES over 1350 at that point? makes no sense
More...

People who think it's going to go higher.

People who were short from an even higher price a few weeks ago taking profits.

Shorts who got stopped out.
 
Quote from logic_man:

For almost any permutation of the ways in which the market can be quantified, there are buyers and sellers at those levels. That's what makes for a liquid market.


Good point, I know money managers don't have a choice of being in cash so they have to be buying and selling somewhere. And I'm thankfuly for those, after doing this for 10 years I guess I see things a little differently then I once did.

How many of you have seen the intraday moves in the Indices where it goes straight up/down (today) all day w/o even a minor retrace... I always wonder how many blow out their account on those moves. I know I did in the beginning.

thanks for the replies... any more viewpoints are welcome
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