I am really surprised by the type of buying today.
It is concentrated on the main ETFs, as if the BOJ had decided to drop the Yen and forced Japanese pension funds to indiscriminately buy US assets.
Peter's work tells us to short at around 15:30 today and then buy the open tomorrow.
I believe that thousands of traders will do the same. This means that the down-move will occur earlier.
But for now, everything is pushing higher, forcing shorts out of the water.
Pascal
TY Pascal,Originally Posted by Pascal
but if you have a good reason to be long - stay long and add longs during the potential overnight pullback :).
( ... trading the futures )
(I know I contradict myself a little, but I caught the leg up early during the Europe session.)
One technical argument for this BO (breakout) and volatility increase (but not the direction) is:
Yesterday was a NR7 day + IB. (Narrowest range in 7 days + Inside bar/day)
I have no idea how tomorrow will look like, but my bias is long and I hope we close today near the high of day.
Last edited by PeterR; 05-30-2016 at 01:19 AM.
No trend shift. RTH buying continues.
basically unchanged
Here is an update that shows the session times I picked.
All times are in Chicago times.
I hope the reader does not feel spammed. But this is a work in progress.
My main purpose doing this, is to better understand when to hold-on to overnight runners and if & when not to.
Pascal's idea to use this for a more macro-view via monitoring a trend shift makes also sense to me (see the discussion below)
We had selling RTH.
We had a third RTH buying session.
Followed by flat asia.
If you control the printing press, you can always perform miracles.
True.
I also read the argument that the current FED is closer Hillary and in support of the current regime.
So might be an additional factor for the FED to accommodate.
On the other hand I do believe in the base line drift and Triumph of the Optimists:
http://press.princeton.edu/titles/7239.html
And the money flight from Asia and Europe.
EMU banks were very shaky during Brexit and still are.
http://www.boursorama.com/bourse/tau...SCHE_BANK-3xDB
(CDS as a stress indicator)
We are not the only ones tracking this behavior.
http://www.priceactionlab.com/Blog/2...-manipulation/stocks have rallied due to large passive funds buying during RTH, investing recent massive inflows
Posting Permissions
Reply With Quote