I have never been able to figure out why the overnight globex session always moves higher without fail. About 80% of the overnight session will close higher. Last night, despite the rally in the bond market, the NQ and ES acted like stocks were going to the moon. There was an incessant underlying bidder purchasing every available contract while bullying the globex higher.
Today it's like stocks are out of fashion and no one wants to hold any contracts.
Why the extremes between the 2 sessions? I've never been able to figure out a logical reason for this behaviour. I lost quite a bit of money shorting the overnight NQ from 2735 all the way to covering at 2750. I saw the bonds rally and was expecting a good selloff today and wanted to be positioned as I had my morning booked for an important appointment.
Regardless of what the market hucksters state, my opinion is we're at the beginning of a major selloff. I will have to find a decent entry to reposition myself.
So....what is the logic behind these overnight moves higher?