ES Journal Archive (2006 - 2008)

[smilingsynic]

Quote from avarus:

Depends on your way of viewing it.

Weak hands distributing to strong hands, who are doing the accumulating, and waiting to markup their inventory.

Looking for a sign of strength--a close above 1514.

 

[avarus]

My granps always said "Common sense is very uncommon", but you are entitled to your opinion.

 

[avarus]

Quote from smilingsynic:

Weak hands distributing to strong hands, who are doing the accumulating, and waiting to markup their inventory.

Looking for a sign of strength--a close above 1514.

Smiley's got common sense coming out of his ears. thank you smiley.

 

[smilingsynic]

Quote from avarus:

My granps always said "Common sense is very uncommon", but you are entitled to your opinion.

Gramps got it from Voltaire. Both wise men!

 

[BoyBrutus]

Heres one method


gutsytrader

11-08-06 01:41 PM

If you're referring to the 5 deep numbers on the DOM then what you're seeing is index arbitrage. Of course you know the 5 deep only shows limit orders. When a index arb program kicks off they put in a large number of limit orders away from value in case they trigger stops to make some extra coin. Then they hit the ES with market orders pushing it in the direction of their resting limit orders. Once they complete the trades on the equity side they just close out any of the completed resting orders for some extra profits. Nothing mysterious about it.

 

[avarus]

Figure out how someone can accumulate a long position on balance from 1530 to 1507 and never violate 2-4% of his capital.

 

[fearless9]

Quote from BoyBrutus:

Heres one method


gutsytrader

11-08-06 01:41 PM

If you're referring to the 5 deep numbers on the DOM then what you're seeing is index arbitrage. Of course you know the 5 deep only shows limit orders. When a index arb program kicks off they put in a large number of limit orders away from value in case they trigger stops to make some extra coin. Then they hit the ES with market orders pushing it in the direction of their resting limit orders. Once they complete the trades on the equity side they just close out any of the completed resting orders for some extra profits. Nothing mysterious about it.

Now this thread is becoming interesting.
Nothing quite like a good exchange of intelligence.

 

[mbusch]

Quote from BoyBrutus:

If you're referring to the 5 deep numbers on the DOM then what you're seeing is index arbitrage. Of course you know the 5 deep only shows limit orders. When a index arb program kicks off they put in a large number of limit orders away from value in case they trigger stops to make some extra coin. Then they hit the ES with market orders pushing it in the direction of their resting limit orders. Once they complete the trades on the equity side they just close out any of the completed resting orders for some extra profits. Nothing mysterious about it.

I've noticed this phenomenon many times, although never before heard the explanation (which makes perfect sense). Seems like most of the time when there's a heavily lopsided number of orders on one side of the DOM or the other, the market moves TOWARD the side with the most orders (which is counterintuitive unless you realize that there's manipulation involved).

 

[avarus]

Quote from BoyBrutus:

Heres one method


gutsytrader

11-08-06 01:41 PM

If you're referring to the 5 deep numbers on the DOM then what you're seeing is index arbitrage. Of course you know the 5 deep only shows limit orders. When a index arb program kicks off they put in a large number of limit orders away from value in case they trigger stops to make some extra coin. Then they hit the ES with market orders pushing it in the direction of their resting limit orders. Once they complete the trades on the equity side they just close out any of the completed resting orders for some extra profits. Nothing mysterious about it.

Don't even need to know what the trend is here. Great post. So many ways to make money. You've got linear and non-linear. Take your pick, position sizing and risk control on top of it all.

 

[smilingsynic]

Buy stop at 08.5--1-2-3 bottom

EDIT: Big bar= tighten stops to 12 and lock in gains.

EDIT: Move stop to 13.

EDIT: to 13.75

EDIT: Hit 15, which is resistance. Trail to 14.

EDIT: Out at 14. No positions, other than short bull straddle on ES (longer term).