ok ok. how was that for attention grabbing.. see how that sucks you in? 1221.50 was the high today after trading down to 1106.75 regular session. The pre market overnight low was 1193, so 29.5 handles higher not bad for a Friday, 2% a day keeps the doctor away. I have a feeling we are setting up for something wild, just wait for the media to get overly bullish and listen for key words phrases like ‘bull market’ ‘the bottom is in’ ‘what should we buy’ to alert you the seeds of a selloff are being planted..
What makes this rally/short squeeze any different from the last previous 5 we have had since mid august? nothing, a few rescinded rumors and some retail sales? mehh. This market could rip higher into next week adding another 5-10% on top of a 13+% rally in 9 sessions but any market no matter what environment cannot go straight up.. if this happens the ES will have rallied nearly 250 points in 3 weeks without any concret news of resolution to the euro crisis. Also we have crowds thousands of pissed of people growing
every day protesting god knows what adding to the tension.
For all you out there who think i am a perma bear, look up what it means to be synthetically long the market via options. Second i trade price action because at the end of the day i need a paycheck. third one can express views on the market via twitter and a blog that is bearish without ‘going broke’. id rather write about what i feel is going on than losing my house, job, life or whatever.
I did remind everyone in a post on october 2nd when we were below 1180 shit could get weird to the upside because it has happend 4 previous times in the last 2 months.
(post here) If we let our linear past dictate future moves one could expect the ES_F to jump back to say 1150 in short time in a massive squeeze.
Also no one can be right 100% of the time, its a market. takes two to tango. if a trade looks like a short and it breaks your stop, reassess and perhaps trade in the direction of the price action.. volume pretty much does not matter now days. its all about price. have a good weekend.