Definitely more program trading between 2 - 4 pm these days. Bots are taking over the trading as you get computers buying and selling futures in bunches in seemingly chaotic fashion.
Over the past 2 years the daily range on the ES was most often around 10 handles, with many days below 10. The average range over the past 3 days has been approximately 70 handles or about 5.5%. While many firms have gone to full margin for day trades, do not be suprised if the margins at the CME get increased, too. This is a great time to be trading the ES.
<i>"Completely agree, austinp." * "Definitely more program trading between 2 - 4 pm these days. Bots are taking over the trading as you get computers buying and selling futures in bunches in seemingly chaotic fashion."</i> Many of us here have seen VIX in the 40s, 60s and higher before. But, it was different in years past. Trading the exact-same entries back then as now would have been good for +70pts to +100pts ES in 2002. Instead I managed to eke out +35 and quit too early today. The difference? Insane counter-trend rips going both directions all day. I had more than -35pts slippage against long positions holding for a highly expected squeeze to at least 1322 if not 1339 magnets. Never before have I seen so many +8pt pops followed by -12pt drops, all the way thru today and past few sessions. Clearly the bots have changed this game dramatically. I'm working a 250-tick chart using tight initial stops, taking a bunch of pars and tiny losses in between catching directional pushes. The trades that go +5pts and back out at par continue to drive me nuts... short trip that it may be (laugh) We should see some smoother sailing for awhile, now that a temporary bottom is likely in place.
Just because you didn't see or get the news doesn't mean there was none. New York State Insurance regulators meeting with banks to discuss capital infusions in order to prevent downgrades to ratings.
Could not agree more... I tend to do the majority of my trading during the morning hours and find it a little easier (gaps and all), but the afternoons are brutal with the whipsaws... still making good profits, but I definitely have to work harder for them.
a close below 1275 would have been a big problem for these markets. Now this market may get a little difficult to trade....