P, where is the 1st downgap if today was 2nd? Maybe I am not understanding something. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2126303>
You're talking about the futures being down right now correct? As in "if tomorrow morning we gap down..." Bad play today. Overtrading and deer in headlights (that and my quotes aren't exactly real-time) caught me off. Risk management made the loss manageable... Today's lesson: *ALWAYS* set up the brackets...
I like enthios support and resistance, so-called POCs or Point of Control. 868.50 and 957 for Thursday If 868.5 gives way then it's all the way down to test recent lows at 835. http://enthios.com/?p=413 See here for explanation: http://enthios.com/?page_id=172
I'm thinking more T day theory and the theory about the low or high for the week of OE is usually made on the weds of that week. This volatility is killer and you are either wrong and lose small or you are right and kill it big from the large moves. Nice little mean reversion move towards the cash gap at 899 from last friday's close is very healthy in order for the market to move up in the next 2 days. http://finance.yahoo.com/echarts?s=^GSPC#symbol=^GSPC;range=5d or 88.5 spy gap which is pretty close equivalent to where futs hit in ah
I had 868 as a banjo string and 1010. My chart patterns usully allign closely with mp. Agree with 868 being crucial.
Right on the chart. This morning!! This morning's downgap was the first one and right now we are down again, making it a 2nd downgap in a row... So tonight's gap should be played long...We already came back 10+ pts from the lows...
If the dumping I mentioned is true, then, there is no tons of short out there. Instead, there are tons of small traders who bought from the institutions' liquidation and are now holding the bag.