This is the puke and hope trade.
- There are people on the Breakout,
- Futures are down some 3pts on the spx.. we open, and they start puking.
- Sell off about 5 SPX points... and all the ones who are going to puke have done it....
- Then it rebounds Trades back toward the Breakout point,
- all the traders who didn't puke have their fingers crossed... "omg....LORD!!!! If we can get back there I'll never trade again."
- we get close to the breakout point and they start selling, all the Prayers are left unanswered, and the selling continues.
3 comments:
E-minis are UP 3+ points after hours.
Not sure how significant it is, looks mostly due to eurousd strength at the moment.
Bias seems lower in the intermediate term... but WTF do I know.
a coin flip would be better a predictor of the open than the 8pm futures.
mamis-ingredients of an important top the averages more importantly the "Blue Chip" dow continues to make a new high, News is cheerfull and even glowing.
Eventually there is a breakdown that is sufficient to make the rolling averages roll over and head downward
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