Kind of makes you think that a fluffy spike like this on low volume holiday with bad news still hanging overhead means that it has little legs for right now. I think an interesting play is short the gap up on the open with a stop above globex highs and hold until the close of the gap. Worst case you still might get 10 points
either hidden, leaked good news in the works or the longs took advantage of the thin volume to push it up to offload?!
Sure enough was a pump and dump deal as indicated by the above poster too! I had been 3 ES/ER contracts short since Fri. managed to get out of $3k hole! My fault though, saw it coming since Sun. and averaged when I should have arbed...anyhow head above water
I wrote this last night before market open: "The market should be up in the AM most likely. You know what they will do? They will sell on the bounce and bring the market down at the close in the last 1/2 hour. Than they will run to the hills after that...scared ...and happy to scalp few penies here, few pennies there." This is exactly what happened. You donot have to be very smart to know the script. How many times can someone repeat the same joke? It gets old.
I was short already since Friday so I did not add more on but I also did not cover in the heat due to my expectation of a gap fill or at least a trimming of the spike in the futures.
Today was a no brainer. A pit trader called the fade on bloomberg before market open. It also seems like everytime oil gets too high the market "freaks" and instant sell offs occur. Tomorrow will be another follow through day for the bears. Bad housing starts and high cpi. Well not a high cpi since its fixed but oil and gold will tell the real inflation story again.