ES

ES went up to 1032 before the session close, but it dropped to 1126 after the market close based on INTC and YHOO earning announcements. Both INTC and YHOO dropped more than 3% AH. Buy The Rumors and Sell the News!

ES

ES went up to 1032 before the session close, but it dropped to 1126 after the market close based on INTC and YHOO earning announcements. Both INTC and YHOO dropped more than 3% AH. Buy The Rumors and Sell the News!

Will we see a short-term correction on S&P 500?


The blue candle showed on Friday when the job market report didn’t make the grade. The sell-off occured in the first a few minutes and last hour. Before the last hour plunge, it actually recovered most of the loss.

The volume (judging from SPY chart) was more than 50% higher than average.

It was rumored that a big firm sold a lots of puts to their customers and had to sell ES to hedge their position, thus the big plunge in the last hour.

Since the uptrend line is still intact, Monday’s open shall give us some indication of where the market will go. Currently, it’s pretty extended. It would make sense if it goes sideway for a few days or a week to ease up the over bought condition. I would not be a buyer at this time. I will look for weakness to short it.

New Order Entry Program

A new order entry program is being developed. It uses the popular DOM (Depth of Market) grids as the main GUI to visualize the whole order entry and management process, speed the process up and reduce occurence of entry errors. Most of operations will be done with a single mouse click. The first release will support bracket orders. More sophisticated position management techniques such as scale in/out, time stop, changing stop to trail stop once reaching certain target, market chasing, etc., will be added later.

ES

It turned out that last night’s low 1057.75 was the bottom. S&P 500 rallied back to the resistence level 1070, a few points away from the high 1075. INDU is fewer than 50 points away from 10K. Barring from any surprises, we shall see 10K pretty soon since everyone is talking about it.

Covered the short, reversed, and rode through half way, but missed the last leg from 1064 to 1070. Went short again at 1068 and 1069. We shall see some pullback tomorrow morning after this big run up, but so far hours into the new session, the market stays right at 1069.75×1070. The bears and bulls won’t blink. The stalemate should resolve in the morning.