Todays massive up move in the market

Discussion in 'Trading' started by bonds, Jun 6, 2012.

  1. bonds


    Today we get a 290 pt up move in the Dow on anemic volume, no real reason for the move some saying short covering some saying hope for a bailout of Spain who knows...

    but im just wondering how this market can move up so easily for no reason and with no volume, when last friday we get a horrible jobs number, bad news from china and europe, heavy heavy volume, and the market is down less than todays up move with no news...

    is the path of least resistance to the market upwards? are we going back to highs? is there any reason the market cant keep floating up on low volume back to highs as long as we have days with no news?
  2. Because yesterday somebody bought a boatload of 132 SPY calls that expired this friday.
  3. bonds


    How come whenever I notice a massive, massive options bet, it NEVER loses. I mean seriously. Nobody messes with big money.
  4. the market has been like this since 2009 when the fed decided to go "all in" and they can keep buyin chips while the rest of can't.

    Its funny to think about all the new traders who have never traded a "free market".
  5. Shanb


    Just follow the price action and listen to the market. You shouldn't let personal biases effect your view of the market action.

    The way we closed today was very strong, why I don't know. One basic principle is that when a move happens and no one knows why there is always a chance of a large move. When threads like this pop up on ET you know that people are caught. The biggest moves happen near extremes because there always those people fighting the tape! Don't fight the tape bro!
  6. bonds


    The price action is obviously saying the market is going higher... no Im not caught Im just trying to decide if now is a good time for me to buy the market... one of the things ive noticed is that it is so easy for this market to go up big on no volume but we need a ton of volume to get this thing to go down. It just feels like I need a reason to be long of the market when I can think of many reasons to be short but not long
  7. toc


    For SPY at 131 was my target too but 132 beats all my readings.

    Do not know where this market is going. It seems to be in the middle territory for now, no clue on where from here.

  8. Shanb


    Heres one way I look at things. When move is extended and everyone can give you many reasons why it's happening etc that usually marks some
    Type of high or low...usually. Quite the oppositte for
    Moves that happens and no one knows why...those are the moves you need to
    Pay attention to cause they can lead with some power!
  9. bonds


    Well i dont know it seems we were extended downside yesterday, but we've moved from 1265 on S&P yesterday morning to 1320 right now so now we seem extended upside i gotta wait for this thing to settle down
  10. gtor514


    You say the volume is anemic, but can you confirm this? Looking at the sp500 futures the volume is pretty good, at least relative to the last couple months. Whether it's volume where sellers or buyers in control remains to be seen. Especially around the 200DMA and a significant retrace level.

    Keep in mind there's alot of liqidity out there and people need to put ther money somewhere. I would expect buying here.
    #10     Jun 7, 2012