ES Journal Archive (2009 - 2010)

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Quote from rock34748:

funds readjusting positions; retail that took tax losses eoy, but NOT GS and company??
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To me "forced to buy at the top" implies stops being hit and/or margin calls. For those mentioned above, I would've thought they'd be buying at the open today.
 
Quote from JSSPMK:

Why do you suggest that it is manipulated? Because it ain't going down as we want it to? Volume in box 1 pre-crisis time was less than what we are seeing now in box 4. Market conditions may change, but I now fail to see where manipulation comes from if volume is present, do you see professional analysts calling for another market crash because it is manipulated? :confused:

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2686379>

Breakout is clearly visible on this chart also (6 index composite)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2684086>
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* Open market operations, or OMOs, are the Federal Reserve's most flexible and frequently used means of implementing U.S. monetary policy.

* The Federal Reserve has at its disposal several different types of OMOs, though the most commonly used are triparty repos and securities purchases.

* Open market operations enable the Federal Reserve to affect the supply of reserve balances in the banking system and thereby influence short-term interest rates and reach other monetary policy targets.

More in detail in the link below.
http://www.newyorkfed.org/aboutthefed/fedpoint/fed32.html
 
Quote from tomahawk:

There is a better answer than mine, I'm sure. I'm all ears. :confused:
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Index funds are forced to buy based on net cash balance from end of month.

By popping the index future 1% higher, these funds are forced to deploy their cash.

=P
 
Quote from Lawrence Chan:

Index funds are forced to buy based on net cash balance from end of month.

By popping the index future 1% higher, these funds are forced to deploy their cash.

=P
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Thanks LC. I understand the first part ... not sure I get why they need to wait for 1% higher to buy, or why 1% higher "forces" them to buy THERE.
 
Quote from tomahawk:

Thanks LC. I understand the first part ... not sure I get why they need to wait for 1% higher to buy, or why 1% higher "forces" them to buy THERE.
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They did not wait, just that the mkt opened 1% higher.

They have to deploy the cash anyway and obviously they will buy at whatever price is available.

Notice how the mkt stayed well above the VWAP, signaling that inflow of buy orders throughout the day.

If you have a portfolio to unload or wanted to build a short position, knowing that you can sell higher for sure, why not?
 
Quote from Lawrence Chan:

They did not wait, just that the mkt opened 1% higher.

They have to deploy the cash anyway and obviously they will buy at whatever price is available.

Notice how the mkt stayed well above the VWAP, signaling that inflow of buy orders throughout the day.

If you have a portfolio to unload or wanted to build a short position, knowing that you can sell higher for sure, why not?
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Gotcha. I guess I misunderstood your first post ... thought you meant "buy at the top" = "buy the HOD".

I found it funny that although Uvol/Dvol, A/D, etc. indicated strong trending ALL DAY, the real trend was essentially over after the first hour.

Many thanks for your insightful posts.
 
Quote from ammo:

jss, dont have a graph showing overall break or double top or reversal for conglomerate measured chart,, but this djt chart shows fade rally
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very contrarian, wouldn't you say? Still above previous resistance. My chart shows that they haven't yet started taking profits, all % based support levels are intact so far.
 
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