The 57.75 bounce produced only 5 pts, not a good sign for last hour rally ...
ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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I use the 9:30-4:15 session. Close of 1240; next day low of 1241.
SPY has a gap; SPX doesn't. Go figure.
S3 on 9:30-4:15 data is--was--51.50.
Something very interesting happened today to the financials - I checked out the time and sales across many financial stocks. It seems what I worried about has happened, due to the introduction of the short sale restrictions.
Most intraday activities are trying to pick lows ever since the initial drop.
As there is no balanced buyers and short sellers during the day, almost every short term traders on these stocks are trying to buy the "pull backs" or "oversold conditions".
When the expected bounce did not happen in a short period of time, unloading occurred and flushing those stocks lower. Of course there is no bounce - how can you get a bounce if all liquidity are on the long side.
This drop could be the start of something far more serious.
Most intraday activities are trying to pick lows ever since the initial drop.
As there is no balanced buyers and short sellers during the day, almost every short term traders on these stocks are trying to buy the "pull backs" or "oversold conditions".
When the expected bounce did not happen in a short period of time, unloading occurred and flushing those stocks lower. Of course there is no bounce - how can you get a bounce if all liquidity are on the long side.
This drop could be the start of something far more serious.
07-24-08 01:56 PM
07-24-08 09:07 AM
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Quote from Buy1Sell2:
Short 10 contracts 1279.50
Initial stop 1300.75
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Stop remains the same for now.
Stop remains the same for now
Stop lowered to 1293.00
07-24-08 09:07 AM
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Quote from Buy1Sell2:
Short 10 contracts 1279.50
Initial stop 1300.75
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Stop remains the same for now.
Stop remains the same for now
Stop lowered to 1293.00
My focus was that policy change always results in change in the market dynamics ... down to tick level.
e.g. Going from 1/8 to 1 cent increment, the introduction of 25K day trading margin requirement for stocks, etc.
The restrictions on short sale results in most stocks not available for short sale at all across the board in many brokerages for their clients ... maybe it is something "unexpected" by the policy makers
I agree that there was a chance for the downtrend to stop and failed ... but we never know as the situation unfolds
I suspect that today will be a continuation sell off from yesterday, perhaps quite large in nature. Oil and bonds set for nice rallies. Euro set to continue upside. However, it really doesn't matter. I have my stops set in all markets and I trail them closer all the time. This is who I am. This is what I do.
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