No your right. Unless we zoom back up to the upside tomorrow, the markets have finally broken key support levels after tricking all the bears.
I always see the press as doing a very good job in hindsight reporting, which sometimes helps to push sentiment to extremes an takes prices along with it. I guess you could call it a feedback loop where the more the news goes round the more negative the market becomes. Have a look at this link to Reuters news on 15th October 2014; http://www.reuters.com/article/2014/10/16/us-markets-global-idUSKCN0I402B20141016 Does it sound very close to Friday's news? http://www.reuters.com/article/2015/08/21/us-markets-stocks-usa-idUSKCN0QQ15Y20150821 On Friday all methods that I use to gain a direction were pointing to a reversal which did not occur. In fact another day like Friday would by my measurements put us very close to the financial crisis levels that occurred 2 days before a huge reversal. Friday was also a huge volume day. The last time we saw volume this large was 15th October 2014 and so no need to explain what came after that. Of note is that markets tend not to rally when everyone is bullish and tend not to decline when everyone is bearish. One thing for certain is that the volatility is greatly appreciated. Tomorrow could make for another exciting day.
everyone is saying sell sell sell market ending zombies walking the earth blah blah blah, if were only so easy we would see millionaires overnight. short spy and wait for it to hit 50! wont happen, market manipulated. this next move up i will bank!
Just out of curiosity, I brought up the ES Aug 28 1800p's. 155 pts OTM (as I type) with less than 5 dte's and they are trading at 9.25..They closed Thursday at 0.50...
amazing trader I follow on twitter who shorted all of the fall on Friday said he'd hold on to a chunk over the weekend, and he just closed the rest for huge gains on the gap down. How would someone have known that it would fall even further? He had such confidence and was correct as usual. Most on twitter seemed to be expecting a bounce. I wonder what 'method' these people who seem to have a crystal ball use?
It's a traders instinct to buy into a very sharp decline, since historically the markets have extreme rallies when they get oversold (until that rally never arrives, see last week)...And then all of the dip buyers who got stuck add fuel to the fire...
You can just tell given the vol pre 915am plus several other factors i knew it was going to b a down day, i was expecting another 15 ES points or so.