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Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Wow! Yet another crazy day! What in the world happened here?!!! Lol! Well, one thing I'm very happy about is my decision to just continue to intra-day trade this chaos. I mean, I believe we had an 81 point swing today. This is really getting to be crazy (but good).
Market opened down (again) and drifted higher while being somewhat choppy. And then just like two days ago, we get this flurry of buying/short covering into the afternoon close. It was absolutely amazing. Then right before the close, we get roughly a 20 point drop. Gone are the days of an 8 point range day, lol! Once again, price closed at or below the 1171 area which was a swing low back in November of last year. What's next?! Lol!
BofA is still looking interesting as it's stuck on Bear Island.
As I remarked 2 days ago, the US “economy” is still in decent shape as private payrolls continue to gain, and corporate profits continue to rise as a result of increased productivity due to lower labor costs. So, it was no surprise that the bulls came out in force today, capitalizing on a very "convenient" drop in jobless claims and record earnings from Cisco, and ramped up stocks and just about everything else in sight.
As alluded to last night, the Bovespa surged 3.8% today, as emerging shares showed good relative strength. Treasuries and gold were big losers on the day, as capital temporarily flowed back into risk assets, while the Swiss franc was the biggest loser as the Swiss allowed the franc to be temporarily pegged to the euro.
The market made a strong statement today, in an effort to re-confirm and validate the post FOMC rally it showed us the other day, and is now within easy reach of of the 1232.00 area, which represents a 50% retracement of the down move, monthly S2, and 20 EMA. The 1264.00 area represents a 61.80% retracement, monthly S1, 200EMA, and the level we sold off from the night the BOJ bought dollars.
Given the damage done to the market and the extensive work that would have to be done overhead, it seems unlikely that the market could exceed these levels on a bounce. Accordingly, it would take considerably more work, for the market to penetrate these levels. IMO, a failure from these levels and subsequent new lows, is the more likely scenario.
"A 15-day short selling ban, which will be implemented on Friday morning across several European countries, has attracted opprobrium from market participants, who see the restrictions as a superficial move that will do little to solve the underlying problems of the euro zone and stop market turbulence.
The majority of the comments from European traders who spoke to CNBC.com on Thursday night were not fit for publication.
Regulators hope that the ban on short-selling in France, Italy, Spain and Belgium will reduce speculative action and curb the aggressive sell-offs that have hit markets over the past week......"
Yes, I love this capitalistic system we have, free markets and all. Laissez-faire is firmly establishing its prevalent position...
First they prop up these institutions with countless billions, and on top up that they ban short selling. Sure sounds like a recipe for prosperity. How about doing something about the underlying problems?
I've had LEAPS on various levels for quite some time, in addition to some shorter term positions. I don't really want to go into detail about all my positions, but I did lighten up my load on the way down. I should have taken more of my oil puts off, though.
Chopped up? I've never seen more beautiful trends... You even get several a day!
I am really going to miss the volatility when the liquidity returns to the market. Eventually, the market will get thick again, and the HFT's and program's effects will be mitigated by the increased liquidity. For all of us dopamine deprived traders with ADDH, these markets have been a godsend. There have have not been any interminable periods of waiting for trades to materialize, just the rapid succession of protracted moves, as the market decisively metes out it's justice.
It won't last forever, so take advantage of it while you can!!!
Attached is weekly VWAP. ( aka, Red's Ouija board)
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Yeah, this has been amazing! And I agree, the bid/ask size has dropped significantly. We're seeing 1,000 - 2,000 bid/ask on average right now vs 7,000+ on average during normal market conditions. Surprisingly, I haven't experienced any slippage during this. Curious to see if anyone else has or not.