No PPT action today. Simply demand exceeding supply. Pretty simple stuff. Only higher lows and higher highs since 10:45 EST. I love it how the permabears must find an unknown evil force (the PPT) pushing the market against them. I suppose they fear the bogeyman too. The PPT may very well exist...but the only evidence is when there's catastrophic plummets which suddenly reverse on a dime, creating a V shape on the chart. There's been a couple of those during this bear market, but today definitely wasn't one of them. Nice back and forth motion today, as prices continued upward, with rational buying meeting each temporary dip. And all those who shorted the bad news, providing more bull power as they cover on each new high.
I'd give him more credibility than that. he's been more accurate the past year than just about anyone else here on ET.
The mass realization by funds and institutions that this whole financial crisis is fake and the recession is very shallow. This current bear market is just a giant shakeout. Thats all. As long as taxes aren't raised the recovery will be v shaped.
u on the other hand, have been WRONG just about all the time. is there a ignore button for this user ?
And yet for some unexplainable reason he has refused to post a "screen-shot" of his positions . . . perhaps that's because he has NONE? It's so easy to spend most of your day posting all sorts of articles on ET and making "trading" claims without using stop-losses. Ever notice that? Huge percentage draw-downs . . . but never a stop-loss ever mentioned. Hmmmmmm....
http://www.elitetrader.com/vb/member2.php?s=&action=addlist&userlist=ignore&userid=53521 You won't be the first.. I on the other hand find him quite amusing.
The reason why this particular move strikes me as PPT is the sheer disregard for price. The huge buyer(s) here could've easily spread out this movement over the course of the day and received much better prices. Instead, there's a 230 point buying orgy in the course of 15 minutes..
Actually, it's been 40 minutes. And as far as the "buyer" buying in this manner, it feels as though it is short-covering. That is why it "feels" so indiscriminate, price-wise. For what it's worth, Bear market rallies have a tendency to start around 2:20 - 2:30PM and then PEAK around 3PM. There is then a pullback for 20 minutes to consolidate the initial rally, and then it's anybody's guess whether there is enough buying interest heading into the last 40 minutes. My guess is that we are seeing this "pattern" right now . . . In any event, it has been a very trade-able 30 handle rally. Longer-term, I would not want to be short heading into that 896 SPX area - - - especially since a simple "measured-move" of 155 points could take you back up to the 960 area. Any market that is able to RALLY on very bad news has to be respected. You cannot afford to be "stubborn" with shorts in that kind of environment - - - especially when you have the FED purchasing agency debt ( Fannie and Freddie ) as they did this afternoon.
It's amazing what they teach you at paper-trading community college these days...brilliant analysis of the current market environment.
Not to split hairs, but I was referring to the following: 2:38 8373 2:49 8583 I agree with everything else you said, it did have the call sign of short covering, and 2:30pm is indeed typically the take-off time. I was short USD/CAD going into it, though its selloff was well into the 8th inning by the time equities broke.