Somethings going on with Deutsch Bank it's trading like it's going to go insolvent.
ES Journal - 2016
- Thread starter Buy1Sell2
- Start date
Really strong real time call. It was Tues at 9:23PM
Yep the FED sponsored price action says to go long, but everything else is screaming to go short... Plus Bullard talking about rate hike in April only to not hike in April catalyze push higher amongst the malaise.
In this market, nothing is "discounted" ahead of time...take the mid-August plunge last summer as a perfect example...VIX was trading down in our current range, the algo's playing the contracting trading range like a game of ping pong...Then Yellen went "hawkish" and the market literally collapsed...Biggest VIX spike in history (i.e. no discounting mechanism)...
So any sort of developments with DB after a 6 week vertical ascent (nearly identical to last Oct's btw) would fit this scenario...Plus the round robin of Fedhead's are going "hawkish" again after they jawboned with "dovish" promises to bounce the market off of the Feb lows...i.e. the Fed induced volatile trading range.
That basically sums up this market since "insert date here"...The consensus trade at this juncture appears to be "wait for a pullback to get long" except that is the M.O. for a bull market...These rallies are fueled by forced short covers and CB promises of "moar unicorn's"...Now given the fact that this market is so gutted by years of artificial liquidity, ZIRP fueled corporate buybacks, etc, etc...anything basically goes...there are some patterns in this market that defy logic...but it appears to me that VIX is screaming complacency once again and the Fed does not endorse a market run to infinity and beyond...they are simply doing their part to keep this thing from collapsing into the abyss...
Didn't liquidate longs.. These are good as gold.
Buying every dip... At 20 point intervals.