Thursday, October 15, 2009

Some observations

Trading in the e-minis has been quite subdued today. I am guessing that the market is waiting for Google's earnings announcement after today's close. If so, once the number comes out I think the market will sell off. Even if Google's earnings are better than expected a fair number of traders will think the good news is a chance to take profits.

I think the day session low at 1083 will hold for the rest of the session. I am guessing that the market will rally into the 1090-95 range by the close. But I still think a 20-30 point break lies just ahead.


Teich said...

Thanks for your insight, Carl.

I think this market has a lot of strength. Right now, with NYSE advance-decline # = -650, /ES is within a couple of points from yesterday's close.

Wags94596 said...

I noticed that the coal and drilling sector "lagged" yesterday but is now playing catch up today with the OIH now in the 128 handle.

This group continues to be a KEY LEADER for the market in my mind. The OIH is pretty extended and looks like it is in it's 5th wave up from the August 17th low.

Something to keep an eye on along with the Euro.


Wags94596 said...

NYSE A/D line breadth is flat with 30 minutes left in the session.

extrader said...

Short ES 1090 and holding overnight!

TAE said...

Look at the late day BS in the SP500 cash, in a couple of hours the movement has been up through two index options strike prices which settle tomorrow morning. Don't be shocked if the print is just a tad above 1100 on the morning of this index option expiration, just like last month, despite the technicals calling for a pullback.

Wags94596 said...

Not sure why people continue to claim that the "technicals" call for a pullback. The NYSE cummulative A/D line continues to make new highs for the move.

As for the late day push up in the SPX . . . it's called "short-covering". Nothing new there.

And yes, I would agree that tomorrow's opening in the SPX for October expiration could very well see the "high" print of the day. Remember, the settlement price is based on the opening price of all 500 stocks in the S&P; not merely the opening "print" of the index itself.