ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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Yeah, I will probably buy during rth. Selectively. However, one day this "bubble" bursts, it always does. So you have to be cautious. I am specially worried that they have been so aggressive on the buy side. That smacks of desperation, like if they know something negative is brewing and want to "hide" it for as long as possible.
Quote from shortie:
Capitulation: Biggest Weekly Spike In S&P Large Contracts On The CFTC In History - $19 Billion In Index Shorts Covered
Tyler Durden's picture
Submitted by Tyler Durden on 03/28/2010 21:34 -0500
This is what capitulation looks like:
The chart above is an indication of the net speculative contracts on the CFTC as disclosed by the weekly COT report. In particular, this tracks the S&P Large contracts (x 250). Last week saw the single biggest weekly short cover in the history of this data set, indicating one of several things: 1) some large fund(s) capitulated and covered a major short position, 2) the ongoing forced short buy-ins by the State Streets of the world have finally yielded results, 3) someone is positioning for a massive move higher in the market by going net short to neutral. The net weekly change in contracts of 66,043 is a record, and involves a staggering amount of capital: the money involved is 1,150x250x66,000 or roughly $19 billion. A weekly move of this magnitude was only ever seen once before, on March 24, 2009, when the government had to cement the bottom of the market following the 666 low. As the Large uses Open Outcry, it explains why we were getting numerous emails from pit traders indicating that Goldman was buying up billions worth of S&P Large.
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http://www.zerohedge.com/article/ca...-cftc-history-19-billion-index-shorts-covered
interesting
February 25, 2010
8:16PM EST
Market Headed To New Highs As Major Buyer Remains Active...
"Mystery Buyer" surfaces yet again to buy the market aggressively in the face of major selling across the board. As we mentioned yesterday, this buyer has been extremely aggressive on the bid since SPY 107, showed up yesterday into the close as the market was about to roll over, and is clearly indicative of either someone with information and/or someone who just wants to take the market higher regardless of any fundamental news. This is a very powerful player in the market and you can actually watch them actively on the SPY bid using Level 2 and Last Sale (Topic #12 "Spotting The Hidden Buyer/Seller" in The Matrix Strategy Trading Course starting next week). As we outlined yesterday, this is a buyer we absolutely need to respect due to the intensity and longevity of the buying pressure he exhibits, and because of today's action/signal we covered our short positions during the final hour for small gains and are now looking to get long as we believe this market is now headed higher...possibly to new highs. The type of action we've seen on this market pullback is extremely similar to the action we saw back in Feb-March 2007 when after a run from DOW 11,000 to 13,000 a severe sell-off in Chinese markets caused the DOW to drop over 400 points in a single day and brought in an enormous amount of shorts into the market believing the market had topped. A couple of months later the DOW was setting new highs and on its way to 14,000. During the course of that sell-off we continued to see a relentless buyer very much like what we are seeing now. Now fundamentally should this market be headed higher? Not in my opinion, but I respect the tape much more than fundamentals or technicals. The action we've seen over the past couple of weeks is clearly indicative of someone accumulating an enormous amount of SPY shares, and we know this is for a reason. Powerful players buying billions of dollars of SPYs or S&P futures over the course of several weeks do not place bets in the markets based on hunches, it is very much based on information or the sheer power to squeeze shorts and take the market higher. Today was a very strong signal that this buyer is relentless on the bid, and will probably be buying aggressively on each and every pullback...this is not the sort of action we like to see when we are holding short positions. Watch for a break of that 1110 level on the S&P, which as we outlined in yesterday's market summary is probably where this buyer wants to take the market.
I don't think the market will reverse till after the Nov elections. The Dems still have alot of that TARP money. They will use it to prop up the markets.
The media will say what they said in 2006 "jobless recovery"
There are no jobs, the stock market is funded by the goverment, it's all rigged. Just no in what direction.
The media will say what they said in 2006 "jobless recovery"
There are no jobs, the stock market is funded by the goverment, it's all rigged. Just no in what direction.
This is correct. Big bounce Monday Tuesday, then sideways backfilling till announcment.
Gee ya think Goldman knows the numbers all ready. Let me answer myself, YES.
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