ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Not trading today.
The announcement today that US government is buying into the biggest banks parallel what is done all over the world. That is something completely new, maybe except for China or Japan in which case they have a socialist banking system in general.
I cannot reading what that impact really is at this point as S&P still has about 20 to 25% components in the financial sector. The fundamental change can impact the way ES moves drastically.
I am not comfortable trading an instrument that is changing in its nature as we speak.
The announcement today that US government is buying into the biggest banks parallel what is done all over the world. That is something completely new, maybe except for China or Japan in which case they have a socialist banking system in general.
I cannot reading what that impact really is at this point as S&P still has about 20 to 25% components in the financial sector. The fundamental change can impact the way ES moves drastically.
I am not comfortable trading an instrument that is changing in its nature as we speak.
Quote from Lawrence Chan:
Not trading today.
The announcement today that US government is buying into the biggest banks parallel what is done all over the world. That is something completely new, maybe except for China or Japan in which case they have a socialist banking system in general.
I cannot reading what that impact really is at this point as S&P still has about 20 to 25% components in the financial sector. The fundamental change can impact the way ES moves drastically.
I am not comfortable trading an instrument that is changing in its nature as we speak.
Amen
Quote from Lawrence Chan:
Not trading today.
The announcement today that US government is buying into the biggest banks parallel what is done all over the world. That is something completely new, maybe except for China or Japan in which case they have a socialist banking system in general.
I cannot reading what that impact really is at this point as S&P still has about 20 to 25% components in the financial sector. The fundamental change can impact the way ES moves drastically.
I am not comfortable trading an instrument that is changing in its nature as we speak.
"fundamental"
"drastically"
those are powerful and emotional modifiers.
why not just let price action do the talking?
from what I see so far today, this is the closest to "normal" that the market's been in a week.
Fundamental - banks will be run like US postal service, period. So if S&P keeps these banks in its component list, the proper valuation of S&P will be much much lower based on fundamentals.
Drastically - I am not the only one who sees this point, thus old money and big trust funds will keep unloading into the market as the short squeeze continues here. Just 2% more flow held by small shareholders was good enough to call the the major tops. Think about 5 to 10% this time.
Price action today - we are still in a move to correct the oversold conditions across many time frames. As we move into resistance, the strength of selling will tell the truth.
Today happens to be just another day of "buy the rumor, sell the news." Even with the government guarantee of the counterparty risk, realistically I doubt the LIBOR would drop all that much. After all, what happens when one of the counterparty go belly up? Worse yet, what happens if oen of the nations declare insolvency? The market is slowly grasping such a possibility and they ain't buying this fix so easily as before.Quote from Lawrence Chan:
Not trading today.
The announcement today that US government is buying into the biggest banks parallel what is done all over the world. That is something completely new, maybe except for China or Japan in which case they have a socialist banking system in general.
I cannot reading what that impact really is at this point as S&P still has about 20 to 25% components in the financial sector. The fundamental change can impact the way ES moves drastically.
I am not comfortable trading an instrument that is changing in its nature as we speak.
Price action and volume tell you the strength of the move. I like to watch the NQ for comfirmation of the formation and PA/volume.
A good dragon
http://www.elitetrader.com/vb/attachment.php?s=&postid=1829804
http://www.elitetrader.com/vb/showthread.php?s=&postid=1829804&highlight=dragon#post1829804
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