Buyers of the Sell-off

Discussion in 'Index Futures' started by dividend, Feb 27, 2007.

  1. Hello. I would like to ask experienced index traders who they think would be buyers in the market today. It seems like everyone is just waiting to see what the other guy will do next, frozen. Most of the volume was down, and more importantly there was fear... IMO, today was a buy day.
  2. Div - if you want to buy into a strong downtrend, have at it! I personally much prefer to go with the flow not against it. I guess if you are a long-term bull, today provided great opportunities to buy cheap!
  3. It's a funny thing, price.

    Some of the buyers would be shorts who were taking profits too soon. At every price level and time-frame there is ambiguity about future price direction.
  4. There were NO buyers today. Why the hell do you think it went down so much if there were buyers.

    The buy orders you saw were shorts covering..., taking their profits to short more.
  5. Idiotic post
  6. You were the buyer... :D

    maybe I was wrong...
  7. ==================
    lots of buying, actually did some myself-buy to cover shorts
    Actually dont look on some fear as really negative;
    last short around 2;oo Chicago time yesterday started losing profit, did a buy to exit, protect profit in ES

    And while the longest trend is up in SPY/ES, YM/DIA;
    50day moving average was bearish almost all day, closed down in ES .

    NasdaQQQ is down from $120 area; went down to $21 and 20 area, up premarket now. Longer trend traders have a good case for longs;200dma is still up

  8. Spot on. No matter what, you still have to GUESS! Figure out what you think the situation IS, or MIGHT BE... then make a play and be prepared to stop when it looks like you're wrong.

    It's ALWAYS that... NEVER different.
  9. Who will be buying?

    Well, it most likely will be some of the large Commercials undoing the large short positions that they have held since late last year. They were net short to the tune of $40b+ and will now use weakness to unwind some of that. There will not be a longer term time to buy until these Commercials become net long the market, and that will be several months.

    Of course the small speculator has been net long this market and right at the top they have been nailed! :(

    So, longer term get short or at least go to cash. :cool:
  10. Cash? That's a guaranteed loss of about 10% annually. People with lots of cash won't sit in cash.
    #10     Feb 28, 2007