volante - I was told by many posters on another thread that ET traders never lose money, never have stops filled (much less away from the market) and make tons of money every day. These folks dont get scared by sudden 200 point plunges, they step in and start buying - well - thats what they post anyways, especially after the fact!
congrats once again to all those who play the no risk overnight futures long system.. you are truely an inspiration.
One reason for the overnight rally is to keep sentiment indicators in check, so no alarm bells start ringing. The way this works is when the markets open and quickly rise and level off it keeps PutCall and Vix in check. Now if the market opened flat or down a tad and rose all day long this would send these indicators into that critical extreme. Watch today and see what you think. http://www.cboe.com/data/IntraDayVol.aspx
Ok our first reading is .47 very low thats climatic and could possible signal a top is near. Lets see if it rises from their my guess is it will rise out of that climatic range as the markets drift lower from their gap open.