Why the gap down and falling price today?

[lwlee]

I'm not a currency trader. When I was referring to the "euro" situation, I'm talking about Greece, Spain, Italy, etc, not specially the currency which does play a part. That being said, euro currency has been declining so steeply, this momentary reprieve probably doesn't spell the end yet.

Quote from logic_man:

See, this is where "causes" ultimately become subjective. The Euro was actually up today. If Euroland weakness was part of the cause for US market weakness, the Euro should have been down, no? It was down every other day the market was weak this week and when the Euro spiked up on some rumor, the ES spiked up, too.


The Euro and the ES were moving in lockstep overnight early Friday, though, and only decoupled after the US employment report. So, for part of the night, you could say the cause was weakness in the Euro, but then at 8:30 Eastern time, that cause became inoperative.

But, ultimately, none of this matters, if you are a trader. You can either trade what the price action dictates or you can try to find external reasons for the price action. The two activities are both sufficiently time-consuming that no one individual can do both competently, even if they were to dedicate 24 hours per day to them combined. If you want to be a world-class trader, it takes more than 12 hours per day of work. If you want to be a world-class interpreter of the causes of market movements, it takes more than 12 hours a day to do that, too.

So, take your pick.

 

[Laissez Faire]

Quote from 1a2b3cppp:

I'm curious to hear if you ever have time to share your secret knowledge.

Do I sense sarcasm?

Is it not secret knowledge and most of my posts are made in the ES journal where I`ve posted dozen of calls based on gap opens and gap fills.

It`s technical analysis 101 and publicly available to everyone who`s interested in learning about it either here, in books or on the internet.

It`s not as simple as gap down, then his, gap down, then that, flat open, then this. Gaps are part of the puzzle and they do matter, but you can`t make a trade decision simply based on the fact that we have a gap. Those who do, are stupid.