I know someone who tried to fade the gap today on the YM, hes down over $15,000. Talk about suicide alert. I feel so bad for this guy. ? Why would anyone try to fade the gap on a day like today given the futures that the market opened with and the market internals at 9:45 am???
i feel like i should've made much more good to see the volatility back though. i bet all these algos that adjusted to smaller and smaller variations, destroying the volatility, are in for a rude awakening.
Happy B'day Steve Couldn't even imagine these kind of moves ... guess it's true what they say - it always hits when the least of us know to expect it... ..but it's a beauty for the eyes
<i>"I know someone who tried to fade the gap today on the YM, he's down over $15,000."</i> There were a lot of lessons learned in the market today by traders who joined the game since mid-2003. Some of those lessons were terminal to trading accounts. We've been saying this type of action is coming soon, heed the warning or suffer consequences. Markets are two-way vehicles. They head south with violence when propped for so long on air-pockets and stilts. There were dips to buy with high probability today, but the opening gap sure wasn't one of them. Sell side all the way, until things were clearly overcooked. Shades of 2002 all over again!
Happy Birthday Steve!!!! Peeps, sell trailing stop limit orders are the way to fly when you have profits at risk.
Bernake probably editing his comments for tomorrow, he knows the markets want an ease or at least a move to neutral bias, so tomorrow he'll probably sound like a hardcore dove on inflation.