I trade long and short, but on some days I will counter trade if I feel a pull back is due (when I should actually just stand down and do nothing). I gave up a large portion of a 3 month gain today, though. I know what's going on, but yet my inability to join super extended plays using basic price action disqualifies me as a trader. I will return to sim trading in extended moves playing the direction of the 5 minute trade for a while, and if I can get accustomed to it, I'll see where it goes from there. The challenge of trading is to overcome the weaknesses that result in failure. The ability to adjust to the market, regardless of the perceptions of what is reasonable or not is the goal I reach for and thus the challenge. Thanks for your thoughts. WJK Post edit: I've traded the NQ exclusively for the last year and a half. I watch the TICK, TIKQ, VIX,VIXN, DX, and AAPL for my internals (AAPL!? ) I failed to look at the DX today, and paid for my mistake.
3/11 gap was 1301.50. That was already filled in regular trading hours. Read the question again if you don't understand. He is talking about afterhours pop of 10 pts.
From ZH http://www.zerohedge.com/article/meanwhile-afterhours "It appears that someone may have called the bluff on our earlier post of a possible commencement of trading in advance of QE3 (and how anyone could be surprised that QE3 is coming is beyond us - it has been our conviction that the Fed is now on a slippery slope from which there is no return since late 2010), and decided to take our every offer in ES afterhours for nearly 10 points straight. That this trade was very much out of the ordinary is confirmed by the complete absence in any of the traditional correlation pairs (see chart below) such as the AUDJPY. Is the prevalent mindset finally one that QE3 is inevitable? If so, look for gold and silver to follow suit promptly and even promptlier nullify today's latest margin hike by the CME."
looks like cascading stops, shorts getting stopped out. 15K volume in ES spikes it 8 pts out of hours. In regular trading that 15K would only move the ES around 1.5 half points. NQ spikes in sympathy 25 points on just 2K volume YM spikes 50pts on less than 500 contracts :eek: TF holds firm
What if that HF was actually short from 1320 and above, and kept holding it for 1220, what never happened. Now when it was getting close to their breakeven, they said: Fuck it, cover everything. Either buying or selling, it was rather stupid to do it in AH, when they actually moved the market. Had it been a long entry, they could have done it before 10 am, when the market was 10 pts lower... That;s why I think this was maybe short covering...