ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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I think today was a massive shake out & no matter how many % we are down today technically speaking, so far, I look at it as a shake out. If I am wrong & we go lower penetrating current support zone, then you can blame Joab, Surf & Chuck Norris (for not sorting out them darn North Koreans) LOL
The primary suspect is 840 area buyer. They are the crowd wanted to jump on board on the first opportunity.
Why - classic mutual fund managers who failed to long the bottom last week are now panic to jump on board. They messed up the tape so bad today it is very much (well, almost exactly) like 2 weeks ago, right before the breakdown below 800.
They are strong hands (not extremely strong) and will not puke until redemption hits them
Unluckily they are a bit early and have not waited for the Bank of Japan to pop dollar yen first!If sell-off continues tomorrow, while these dudes are buying madly, at the next level below 800 to 780, a short term rally to 1000 is not a problem
Edit: How do I know - at around ES 839 to 840, whenever the dip below happened, size buy orders scooped offer on the component stocks ... while retail lot size orders selling madly at the bid throughout the day.
Yes.
But I answer this only to point out what I did wrong.
Sold Calls last night at 891 and covered them at 818, but only made a small fraction of what I would have if I had used the futures.
When I was a new market maker one of the old guys saw me selling Calls as the market was falling apart, and he said âSelling options is no way to get short deltas son.â I should have remembered that earlier.
exit 20.25, weak updrift.
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