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Might be able to buy again wed or thursday. I suspect there is going to be more butthurt for the dip buyers...
a lot of them forgot what a down day is.
Guess we got a bounce, thought we may drop some more today.
Anyway, I guess we might work back up to 54ish(maybe) and would look to short again around there. In the mean time just going with the flow.
open interest is 5 x volume so you have real buyers and sellers versus mostly scalpers
you have a low tick increment of .1 point or 1/10t of a point versus 4 or 1/25th for the es and the nq. this has serious advantages. You don't get whipsawed as much.
there are 2000 stocks with small percentages effecting the index versus 5 or 10 controlling the index.
overall a lower tick increment is better along with a lower tick value or contract size. es..2 ticks is 25 bucks.. 3 is 37.70 which is easily done in lots of whipsaws.. this is 6 to 8 points in R2k. your stops for entry can get better fills as well .. or get you in a little earlier. This is exactly why the es volumes are down significantly.. and the NQ volumes are up. the es needs a tick change.. just like the R2K (russell 2000) to .1 equal to $ 5 which would get volumes up and get people trading it again. the arbs and HFT love the 12.50 tick size.. it is ridiculous when you think about it. you pay that minimum on every stop to enter.. versus 5 or 10 bucks and a much better fill on the r2k. the nasdaq is better than es 500 due to the lower tick amount of $ 5 bucks. If this was not true then individual stocks would be trading at increments other than .01 dollar or 1 cent.. stocks if the es would be trading at 3 to 5 cents a tick instead of 1 cent. THIS MATTERS WHEN PLACING Stops and MIT orders to enter trades.