I want to remind everyone that banning short selling is only a temporary solution. It causes a short covering rally, that's all. Whether it turns into an actual uptrend will take more time to assess. Typically once the buying dries up, the overall longterm trend will continue. My belief is that bottoms take 8 to 12 months at least to develop, so from a longer perspective selling rallies is the way to go in my view. Also, I should point out, that a daytrader using my combination of indicators on a 2 minute chart coupled with the hourly, would have easily gotten long near the bottom on Thursday.
Thanks. The call to close around 1250 is a sad one - everyone has a piece of the action, except the public and individual traders who do not have the information prior. We cannot read the intention everytime. e.g. I could not imagine that they can bring the index upto 80s on fri morning.
I AGREE with you that the PPT should not effect a trader using a logical probability trading strategy and a disciplined money management system. and i AGREE with you that this rally should be sold when it runs out of steam.. ALSO by banning short sellers during this time period this rally is more likely to sell off HARDER when it turns over again since now tons of WEAK hands hold positions in stocks AND with a REDUCED short interest in stock positions there will be LESS retracements on the way down (caused by forcing the weak hand shorts to cover - but they will no longer be there) and we will see HUGE bars to the downside on the next large sell off... 10 points down on a 2 minute bar again and again and again... where before we had <i>somewhat</i> of orderly daily sell offs... BUT the PPT does exist by governmental decree and by congressional law... it is usually private in its actions... this week they became VERY public... obviously public...
PPT is a non-official moniker. However, the group OFFICIALLY known as the "Presidents Working Group" does exist for the sole purpose of dealing with financial markets and issues. Reagan established the group in response to the 1987 "crash". Im not sure if it was by decree or law however. Frankly it doesn't matter.
Right.. it is well know in the trading industry that the PPT = The Presidents Working Group... thanks for pointing that out... using slang is sometimes not helpful in clarifying something for someone... I have even met Prop Traders who have worked with the PPT, excuse me, The Presidents Working Group... Just as the US Guv intervenes in the Forex market for the dollar... and the Bond market with Repos and stuff... they intervene in the Stock Market too... its no big deal... sometimes you can see them coming... like this last week... with option expiration and heavy put buying volume and the ban on short sales and the vix topping at 42.16... It was 10 9 8... 1... ignition... lift off... a sight to behold... thanks...
Sweet buy zone on ES at 1212-1218... a trade here with a few point stop could net you 75 points profit. A trip to this area for a gap-fill is probable IMO.
spectre, please identify congestion zone. are you talking about a drop back down out of the congestion from Jul to begin of Sep? or are you talking about the congestion created by Friday's sideways between 68 and 37?