ES Journal Archive (2006 - 2008)
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doing a CAMTASIA RECORDING of todays number...will be posted after rendering.. it will be a full day session...so wont be up till tonight.
notice the MM's kept the market propped up near the highs so they could print a break and run on stops above 1380 for a split second before thrashing it...
checkout how much of a scam trading is...huge players can literally track price up to any levels to blow the stops in the direction they wish.
the largest investment banks/trading houses on the street 'track' each others movements and work in a large herd mentality. The largest dictating the direction, whether it be a FED sponsored action or not.
Essentially acting as market makers.
edit: watch for distribution up here.. as the MM's use algo's to get net short over a longer period of time.
Yes, but index futures are depending on stock prices.
Moreover remember like Kerviel said that his obligation was market making in futures mainly Stoxx 50?
I do not know the mechanism but es can not move independently on stocks in it.
Somebody must offer liquidity.
Btw, what now? Kick down but we are crawling up again.
Another kick down at begin RTH expected but it will be "buffered" with same ease?
Moreover remember like Kerviel said that his obligation was market making in futures mainly Stoxx 50?
I do not know the mechanism but es can not move independently on stocks in it.
Somebody must offer liquidity.
Btw, what now? Kick down but we are crawling up again.
Another kick down at begin RTH expected but it will be "buffered" with same ease?
the SP500 is a weighted index, RENTEC sends in huge volume of trades in 'stocks'... a program buy or sell order in a select few weighted stocks controls the index.
GS doesn't care about Joe Trader but other hedge funds who aren't in the inner circle, these pools of money are worth 'gaming'..100s of millions of dollars..not to mention their derivatives exposure in individual stocks.
Yes. ES can move independently from the stock prices forever.
That's how Fed stepped in in 87 to stop the crash.
Once someone drive the index future to a direction that is so overpriced (or underpriced), tons of program buy/sell orders will kick in to "lock-in" the profit between the future contracts and the underlying stocks.
Remember one simple fact - 95% of the outstanding shares in stocks are valued by the change of hands of the remaining 5% shares traded day-in, day-out.
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