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ES Journal - 2013
- Thread starter Trvlwanderer
- Start date
Quote from horton:
AAPL is the largest component of the NDX. The market maker algos use it to push things around a bit as they position the NDX and SPX for their next move with the order flow.
In this sequence they ran out of order flow to get the SPX to 1650. So they gunned AAPL to do one last piece of business at NDX 3110. Then immediately they gunned AAPL the other way to take the NDX to 3105. The logical scenario is that they are done filling orders at SPX 1645 for now and will try to take it back to the VWAP at SPX 1640 to fill the orders in that area. But let's see what happens at NDX 3105.
This stuff happens alot after the Europe Equity Close at 1030 CT and before the Europe Derivative Close at 1200 CT. I find that interval to be very tough.
So there's NDX 3105 Held Offer and then NDX 3100 to confirm they are trying to push SPX to 1640 VWAP. But I assume they are trying to get there before the Europe Derivative Close. If they can't then all bets are off.
Quote from RichardRimes:
I know you didn't ask me...but...the call option IS the stop loss, so I go short @ 1634 ...buy a weekly say 1650 , that is my stop loss if ES closes above that on Fri my short is covered. You have to go out pretty far to buy a cheap option and if it does get covered by Fri then you have a realized loss which won't be pretty. For myself that call option is more of a catastrophic type of stop loss. I'll open and close (hopefully profitably) several times before Fri.
Thanks for the reply. I like the idea of purchasing call options for insurance against an outlier event.
Quote from horton:
So there's NDX 3105 Held Offer and then NDX 3100 to confirm they are trying to push SPX to 1640 VWAP. But I assume they are trying to get there before the Europe Derivative Close. If they can't then all bets are off.
Time ran out so now they will try to get it done with AAPL again. Watch for AAPL 493.9.
Downtrend reversal should see even higher.