Hope they mulch your "selling orgies" into spitted gum next week. Shorting has become increasingly difficult as the market has no direction, you donât know which way it will run in last 1/2 hour... and if you are short, you will be handed down margin calls and you can bet on that. All the Technicals are pointing to a solid bottom in place and since it can't go down much, it has to go up and if you get caught you will regret.
Short covering added fueled the fire. A days 20% volume does not comes from short covering in last 1/2 hr. The time of execution was so perfect and so well co-ordinated. You donot know few things since you are not in Hedge fund business. Last minute rallies are the works of institutional traders who wnat to close the market certain way and they make a good impression on others that you donot get out of line by pulling indexes below certain trendlines in your selling orgies.
You're assuming there is some kind of a connection between price and the underlying value of the asset. Look at the crazy trading we have had lately. Markets moving 4+ % back and forth within 1 or 2 days. Do you really think the value of all these companies changes this much on a day to day bases? Its all nothing more then millions of traders hitting the buy or sell button almost instantly.
Hello Anek, Since you are available can u help with my question? FWIW I was looking for a trend move for many hours scalping many points along the support level - mostly long. . .got out with a profit, went to the bathroom with the intent to leave my computer trades and take a workout break outside early before the market close and when I got back saw an opportunity to go short as it looked to break and WHAM! My medium-sized position wasn't hedged with a stop, but I feel I am ok since this position will soon enough (likely) go lower. But a good lesson to ALWAYS have an "emergency" stop. I almost always do have a stop, but with these trades I was in and out over and over for 1/4 to 1/2 points and well. . . I've only been trading futures a few months - but any help with understanding the markets' possibility in making moves like this to make some sense to me G
The big boys in Wall ST were anticipating a rally next week because of ABK rescure news will be released on either Monday or Tuesday. This ABK news is huge, make no doubt about it. That's why: 1.Hedge Funds were covering, some started long positions, ST of course. 2.Retail shorts got caught & covered in a hurry. 3.Fund managers were also buying in addition to program buying. 4.Wall ST Independent Traders were also covering/or buying. These are prestige class of traders who trade at least 10 to 100++ Millions dollars daily. In short, Wall ST as a whole is anticipating a RALLY next week, it's why we saw an impressive market reversal by the closing bell. Asian market is rallying now Monday trading in anticipating this ABK news also. That is how big this news is, ST (short term) of course.
Thanks NQ that helps a lot. So the same thing you are looking at and what I am learning to also see is seen by enuf "traders" to actually create these scenarios - which is a GOOD thing since we can easily profit from the (madness) method(s)! G
Well, you must define your stop or maximum allowed risk of the trade before you actually place the entry. I think trading without a stop is extremely dangerous especially if you were not even monitoring the trade. Little irresponsible from your part. Sometimes I use mental stops but an emergency stop goes without saying and if I'm using a mental stop at the very least, I'm watching my position like a hawk. Anek