I never saw volatility like this

I hope the volatility continues. Can't remember a day like this in awhile. This was the relief rally that was somewhat anticipated.

Goal for tomorrow is a continuation sucker rally in the morning and then sell it off hard and furious.

Media will pumping how a bottom has been hit and smooth sailing ahead, then boom, a fresh new shoe drops catching momo traders off guard and their bull legs get taken out.
 
<i>"Can't remember a day like this in awhile. This was the relief rally that was somewhat anticipated.

Goal for tomorrow is a continuation sucker rally in the morning and then sell it off hard and furious.

Media will pumping how a bottom has been hit and smooth sailing ahead, then boom, a fresh new shoe drops catching momo traders off guard and their bull legs get taken out."</i>

Yesterday's squeeze was predicted and highly expected by many veteran traders... that's why we kept buying dips all afternoon when newbies kept selling pops.

But... those type of probability predictions are a minority. Most of the time, no one has any idea what will happen ahead. That's why we rely strictly on chart analysis (T/A) to make money.

Trying to predict = project what will happen next is a double-point dagger. Those who make predictions every day will be wrong a majority of times. That makes them feel stupid in the end, which is not true. It also presses a trader into fighting price action just to defend the bias of an opinion.

Trying to outsmart the market via logic and projection is a waste of time... clouds our focus and dumbs us down. Today's session will do three things: it will go up for awhile, it will go down for awhile, it will chop sideways in between. Staying on the correct side of price action thru it all demands our entire, objective, agnostic focus.
 
Quote from ByLoSellHi:

I mean, this is unreal.

From -295 earlier to +225 ???

In the spate of two hours????

On NO news?????
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Reminds me of the 1987 stock market crash. Lots of volatity for days following 19 October 1987.
 
:-) ..the short bus was pretty full..some got off, but there was a queue to fill those empty seats... a few more stops to fill the back seats and then north we headed to drive her off the cliff. Price action at its best, bin those indicators !
 
Quote from Ivanovich:

Just because you didn't see or get the news doesn't mean there was none.

New York State Insurance regulators meeting with banks to discuss capital infusions in order to prevent downgrades to ratings.
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Jim Jubak, MSN Money claims there are $450 Trillion inn CDS's out there. Excellent news that the situation is being investigated. The best way to avert a CDS domino collapse is to stop it before the first insurer falls.


I think Jubak's numbers are a bit out, but it's definitely huge.
 
Quote from dr. fill:

Jim Jubak, MSN Money claims there are $450 Trillion inn CDS's out there. Excellent news that the situation is being investigated. The best way to avert a CDS domino collapse is to stop it before the first insurer falls.


I think Jubak's numbers are a bit out, but it's definitely huge.
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His article:

This has grown to be a huge market: The total value of all CDS contracts is something like $450 trillion. Because buyers and sellers of insurance usually create multiple "policies" as they attempt to control risk, that number includes a lot of duplication. Real exposure, says the Bank for International Settlements, may be only 20% of that, or $90 trillion. Some studies have put the real credit risk at just 6% of the total, or about $27 trillion. That puts the CDS market at somewhere between two and six times the size of the U.S. economy.
 
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