So many people wondering why the markets are getting hammmered today. I guess it will never cease to amaze me
I'm with you. I make money from the what, but the why amazes me. It was reported on CNBs yesterday that the top search term on Google was "how to buy stock". So I make money from the what, amazed by the why and amused by the how.
The S&P and Dow are down a huge 0.75% as i type this. Perhaps they will end the day down -1.5% that will something worth writing about.
I tried to verify as well, and that's what I came up with. It was said during Powerlunch, they didn't say what timeframe.
"Hammered"? Down less than 1% when you wrote that. Wait until a real down day happens. Watch the "liquidity providing" HFT algos pull every bid in sight. It's coming.
Well I've been cautious for a correction for the past few weeks.(Again I'm usually early and when the market doesn't do what I expect the following few days instantly, I get wishwashed into thinking I'm wrong and that the market must be right(market was still catching bid and making HL's)). Anyways there were a lot of clues to today's action. The main being that volatility finally got setup. I posted yesterday that a lot of yesterday's moves were strictly based off volatility. Also Nikkei has been getting weaker as well as the U.S. dollar. But yesterday the huge divergence in the internals and not only that, but ES made a lower low vs the other indicies....and I was absolutely puzzled as to why at the time. I've been having a bearish NQ signal for a while now...but as NQ made new all time highs today, I got swayed with the sheep thinking it would be another bullish day but good thing I was not trading that or else I would of lost a crap ton as it made a new high and then dropped a million points. The frustrating part was that I saw YM, ES, and TF all hit resistance areas at the open but instead of selling I just watched as my bias was bullish for the day. (with vxx making new lows as well) VX futures on the other hand made a HL and was pretty much at support on open....I blinded myself as to the signal as it has been reinforced the past 3 months that tracking vol has been futile. Anyways good to see volatility back up. I have gotten complacent with the no volatility environment. If anyone of you "knew for a fact" that today was going to be the outlier day congrats. I only "suspected" we could, but again got too used to the entire year's movement.