yesterdays rally was fueled by a rumor that UBS would be bought out as well as an analyst upgrading UBS due to,get this! their write down was so large it must indicate the kitchen sink and the worste is behind it. we heard the worste was over how many times? also,did anyone notice that the last 4 Tuesday's resulted in 400 point gains! well,actually 3 out of the 4,one was only a 200 point gain. of course we then procedded to give everything back. keep in min as traders,we trade what we see so if we start moving up more on volume through resistance,trade accordingly but careful with overnight positions.
Wise words. I anticipate a retracement to 1344 on the ES (50%) fairly soon. But of course, as you say, one must be vigilant and prepared for anything. On another topic, i wanted to short GM with puts while this little irrational exuberance remains, but in perusing the put price of the itm's i noticed that the premiums are excessive or else you have to give up leverage to get a reasonable delta and premium. They ain't giving 'em away. This tells me that the consensus is that GM will tank. I'll look elsewhere, because getting scalped is not my idea of fun.
Thanks, that's a good idea! I guess i'll have to revise my previous estimate (guess) of the ES retracement. Is Lehman using all that cash they raised to pump the market and take out shorts? If so they got help from Ben who said we might even have a recession. Goodness me! Who would have thought? And as we all know there is nothing like bad news to really pump the market and kill the shorts. Don't you just love the stock market. You have to throw common sense out the window if you want to make money intraday. I know i love it!