May

25

Regrettably for the many traders out there that watch such things the 100sma is intersecting directly with the 1308.50 gap.

Victor Niederhoffer writes: 

As those of us who strive in the futile effort scratch out a living by taking advantage of microscopic moves know, the market had a terrible excursion down overnight to the dreaded 1300 level stopping at 1302.5, and then gracefully as grandpa martin would say, climbing back to 1313, —– what does it all mean is a excursion down just above the round number, a danger sign, or a sign of strength.

Hard to test this without refining the data so far that it becomes statistically meaningless. But it's an interesting question that could be generalized in many different directions. 

Jay Pasch writes:

It is beneficial to have learned here the undesirable nature of stops and to sleep in the buff.

Jeff Rollert replies: 

That was not the visual I needed before my second cup of coffee…

Jim Sogi writes:

A couple of sidenotes…

Just around the close, certain brokerages changed the margin requirements certainly wiping out a number of players and causing some of the airdrops in the night as certain large positions liquidated. Secondly, it would be necessary to examine not only 24 hour data, but look to see which countries were manipulating the markets while NYers slept. The idea here is that the overnight markets or foreign interventions are becoming more and more important. Note the existing unfilled gaps that the day markets have not been able to fill for a while now. The same condition existing a few weeks ago in reverse as well. The night session is not a thin as it used to be. Still if you could, why not move things around at the margin for your own gain. 


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3 Comments so far

  1. Edward Matveev on May 26, 2011 12:02 am

    The market became wery thing all over the world. Even small money flows now can quite substantionally affect markets, especially GEMs.
    If you look at any chart - SPX or DAX, China or Russia you can clearly see that the uptrend which was founded in the beginning 0f 2009 has steepened in 2010, and the 2011th has prooved it. It may mean that hopes of quick recovery to the precrash norm has failed and reflected back to the market. This may mean that the major correction in summer may prevail and go further south by another 5 - 7%.

  2. david on May 26, 2011 2:56 am

    Well according Barrons’s R.W. Forsyth, just hours ago reports that “top technicians” see further corrections ahead. Perhaps a good time to copper?

  3. Anonymous on May 26, 2011 12:11 pm

    There are also times, such as the current, in which it often pays to take the contrarian’s bet. The recent pullback off of the year’s high has been gentle and orderly, anecdotally-speaking the hallmark of higher highs…

    Jay

    >> It may mean that hopes of quick recovery to the precrash norm has failed and reflected back to the market. This may mean that the major correction in summer may prevail and go further south by another 5 - 7%.

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