Okay, I was really caught off guard by this. It didn't cost me anything b/c I stayed out today which was kind of stupid b/c the set up I was looking for happened in the am (essentially a dip in the Dow after the mild increase from the morning.) So what caused this rally? Did any of you expect it, care to explain it, catch some ES points out of it? Thanks as always!
don't know, don't care. as long as it moves. but I tell you, crap like supply demand and buyers matching sellers are liquid to wash your brain. simply not the case all the time. manipulators are out there to get ya or they suck themselves.
SP is less precise than Dow Jones at least on my model. <IMG SRC="http://www.elitetrader.com/vb/attachment.php?s=&postid=207793">
I was wondering the same thing, since economic news has not been all that good. Jim Cramer "We saw the same thing today. While the market was up before the refinery fire, it wasn't up this much. What has happened is that the traders who bought puts in the window between the refinery incident happening and the news hitting the tape and parsed, are now blowing them out, including the near-term puts from today's expiration. And they are lifting the market mightily. " Makes sense to me, but as I'm net short it could have been a better day.
To compare this is yesterday's: <IMG SRC="http://www.elitetrader.com/vb/attachment.php?s=&postid=207801"> As you can see there can be a thrust under the theorical value but this can be expected and the value is indicated when one pass the mice on the label. The difference between today and yesterday is yesterday we made a clock path by following the light blue path, today we first follow the dark blue (this is equivalent of "consolidation") and then a counterclock path. By doing so we can stop just before the extreme : it is what I called Feyman-like effect (in quantum theory although my model is not inspired as many by quantum theory at first) but it is too long to explain although I will do it someday because it is as funny as Science Fiction