All those tools who bought the close yesterday in hopes of a rate cut this morning are getting sheared. The market goes out of its way to punish idiots who believe in dumb rumors. Now Goldman comes out with its sell rating of the brokers which means they were dumping their stocks like mad in yesterday's close.
oil, gold, fin, tech, retail, all r down today but will wait till ben speak.. we might rally till 1 PM.
Just out of curiosity did you short this gap this morning? As a newbie --- had I put money on it (which I didn't because my TOS account is still not cleared for futures trading) --- I would have bought YM at the market at 9:30 with a 90 point stop and let it do its thing your thoughts?
I think the worst strategy in a bear market is to go long at the open. I think we're in a bear market. At the same time, shorting at the close is not a recommended strategy either. I think you have to short rallies here. But the market is so weak right now, the rallies don't even last more than a day. If you're going to go long, I would recommend it after a very nasty down day when everyone thinks the world is coming to an end. Not after a huge spike yesterday.
I understand that reasoning We'll see what happens --- I've learned enough in the past 3 months to 'not' put money on my latest fancy theory no matter how good it sounds
can make some money by selling the contract at 12770 but I am going to see if I can stay in till the gap fills completely
YM8H - opening gap 90 points buy 1 contract at market open (in at 12,700) Stop ---- 12,610 (90 points below the purchase price) Sell ------- 12,770 -- 20 points below yesterdays close Expectations ---- the 90 point opening gap will fill sometime during the trading day Profit - $350 per contract Who's money gets taken People who stayed long after the rally at yesterdays close People who shorted at the open expecting the market to continue its downward trend (short covering will fill the gap)