100 Delta government injects money directly into key banks. Few understand the effect that has. GE earnings were actually not unexpected, and it could have been much worse. LIBOR, HIBOR and EURIBOR spreads about to ease. Few understand the effect that has. FDIC reassuring that it has substantial latitude to insure depositors holdings. IBM able to raise money without much trouble. There is $6T on the sidelines waiting to get invested. And you know what? There are going to be more failures overseas and here [but zero delta the letters GS and MS are on that list], and we are likely to go into a recession since GM and F are going to have to let go a huge number of workers and that has trickle effects, but we have priced that in now, twice over. nitro
I was invited to go to the Chicago Horror Film Festival. I told them I see bloodletting 24 hours a day in the markets, thank you very much. The only thing missing are the screams. Those are silent. http://www.chicagohorrorfest.com/ nitro
The book in ES looks like the pre-market. There is zero interest on either side. They are letting people panic and making them pay huge. The cost to investors is, out out of this world. nitro
Once again, ES continuation pattern formed, so that is dangerous to downside intra-day. But a breakout to upside also possible. nitro
Markets hell bent on saying: "all these gains all these years were ill-gotten gains. I am going back to the values before those ill-gotten gains". It is a moral statement almost, like a parent taking away a kids toy because it misbehaved. If that is the case, expect 780ish SPX. nitro
Strong possibility of SIFs locked limit higher pre-market. Then it gets interesting when RTHs begin. Announcements can come at a blistering pace, sending all SIFs locked limit higher, period. If there is no doomsday Armageddon, possibly you may not see these prices again. Even if they go lower by another 10% slowly, are you willing to risk trying to make an extra 10% of possible 100% upside to catch the absolute bottom? The buying will be swift and unforgiving. nitro
Working through option market maker automated gamma programs [they may be doing it by hand tonight - lol]. Once they have done all the hedging, watch out above. nitro
A likely scenario given the low volume is sideways from here to about 2:00 PM CT. Maybe a range of ES 930 to 950. At 2:00 it gets interesting. Low volume days are violent back and forth, with strong upsides. nitro
970ish and 982 are obvious first and second strong resistance. People are all giddy about going long now. There are tons of bargains, but this won't be a V bottom from here. I view this rally from 850 SPX to 955 as getting back to sane levels. To categorically state that we are out of the woods is wishful thinking. nitro
Talking profits on 1/2 of synthetic call positions into the 970 area. Will take some more off in the 982 area. nitro