Yesterday's sell-off had high number of ticks per unit of volume. In other words, it appears that program trading computers did not participate in the sell-off yesterday unless they broke their sell orders down into much small orders than the regular sizes of their orders.
Today, the number of ticks per unit of volume is small. I supspect that the computers have been programmed only to buy.
Incidentally, I have incurred losses since March after every sell-off, thinking that the sell-off will continue.
Can anyone tell me the variance between the Emini's and actual S&P? It looks to be roughly 4-5 points, no?
If Carl is right, this would fit with the rest of the times the S&P has rolled over and tagged the bottom support line. As it stands now, daily Stochastics are still headed down; however, I think Carl would recant if we saw the S&P hit 1090(Emini hit 1085).
Kishore, I tried to chatch the falling piano yesterday and I rely a lot on DOM getting in and out. It was almost impossible to find a good place to get in after 1088. the DOM had extreme velocity. At times when price was stalling both sellers and buyers were hitting ES with +200 lots still level2 was only 100 and not moving. No man can trade that way and reload that fast, algo all the way down to 1072.
Ouch, this novice learnt BIG lessons today! 1) Do NOT average down 2) Do not put in than what you can afford to lose 3) Take profits regularly 4) Limit your losses
Am learning and perhaps will all through my life! Carl, please carry on with your blog -- even if trades go bad, it teaches us a great deal!
14 comments:
Are you reading xTrends today?
Yesterday's sell-off had high number of ticks per unit of volume. In other words, it appears that program trading computers did not participate in the sell-off yesterday unless they broke their sell orders down into much small orders than the regular sizes of their orders.
Today, the number of ticks per unit of volume is small. I supspect that the computers have been programmed only to buy.
Incidentally, I have incurred losses since March after every sell-off, thinking that the sell-off will continue.
Is it different this time?
Interesting point Kishore, where can I find that tick/ unit info?
I've suffered the same way as Kishore and am sitting this one out, although I was tempted to go short once i saw Carl was short!
carl is short?? what has this world become??
Looks like we will test 1080-1082, then prolly selloff, jmo
Buy the dips?
Will we not always be able to sell it to the computers that are doing all the buying for Bernanke, Timmy and Obama?
Bubbles operate on one more fool theory. Remember housing bubble?
Maybe our memories are too short!
Christian, use constant voulme charts. They will normally show ticks per unit of the voulme, instead of the constant volume of all bars.
i have partially covered from 1095..and expect another wave to reach 20 SMA (~1060-65) there i will recover and then a small long..
Until the government gets out of the market, this market is very unsafe, for long or short.
If enough traders agree on this, it will be either the government controlled computers by thmeselves or the traders.
Can anyone tell me the variance between the Emini's and actual S&P? It looks to be roughly 4-5 points, no?
If Carl is right, this would fit with the rest of the times the S&P has rolled over and tagged the bottom support line. As it stands now, daily Stochastics are still headed down; however, I think Carl would recant if we saw the S&P hit 1090(Emini hit 1085).
Jeff, I believ. 9.96 x SPY = E/S
Kishore,
I tried to chatch the falling piano yesterday and I rely a lot on DOM getting in and out. It was almost impossible to find a good place to get in after 1088. the DOM had extreme velocity. At times when price was stalling both sellers and buyers were hitting ES with +200 lots still level2 was only 100 and not moving. No man can trade that way and reload that fast, algo all the way down to 1072.
Jeff, the differential is approximately 3.25 points between the futures and cash market (SPX).
Ouch, this novice learnt BIG lessons today!
1) Do NOT average down
2) Do not put in than what you can afford to lose
3) Take profits regularly
4) Limit your losses
Am learning and perhaps will all through my life! Carl, please carry on with your blog -- even if trades go bad, it teaches us a great deal!
Thanks!
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