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Some one dumped 60,000 E Mini Contracts...seconds before market close...Another Possible Wipe Out?
I saw this and thought it was a good post for some thought. Ask yourself ... Was some one trying to get a large trade in on the July books before the market close? Was it a big prop desk that is net short ... Trying to move the market downward so they can exit their short positions? And, then go net long before tomorrow. There are a lot of possibilities. No doubt, an alarm went off in the fire house.
I am going to sit back and let the pros and the knowledgeable write about this. I feel there will soon be a story in the news on this that might give some more insight. It seems for sure, the cat is now out of the bag now, so-to-speak.
I am glad and thankful that the markets were down no more than they were. That indeed was a wad to dump just short of market close!
I assign a VERY, VERY small chance of QE3 tomorrow at the Fed meeting. I would not be surprised if ZIRP is extended well into 2015 (because it's ZIRP4EVA), but the market is going to go lower when QE3 isn't announced. QE3 is going to be announced into a 10-20% market slide - I'd be very surprised if it is announced given recent market action.
Did a major sale indicate someone knows something more serious? Maybe, but I think a more likely reason would be that you've been a run on the hope of QE3 that likely will result in disappointment.
I highly agree with what Jeremy Grantham said about the market in his latest letter - "I, for one, wish that the world would get on with whatever is coming next."
As I noted earlier today, you're seeing momentum plays reverse - Starbucks, Coach, Chipotle and others. Coach was down nearly 20% today alone. Things may muddle along in the longer term, but I would advise caution in the short-to-mid term.
Indeed I feel caution is warranted. Perhaps as you say momentum is reversing. I am sure, in time ... answers will be forth coming ... if not in words ... through market movement. Perhaps, this is the beginning of a market pull back.
the trading volumes have been very weak recently and almost non-existing today. so any, more or less, sizable trade will move the market a point or two. august will be even worse.
Comments
Well no, I am not trying to say anything.
I saw this and thought it was a good post for some thought. Ask yourself ... Was some one trying to get a large trade in on the July books before the market close? Was it a big prop desk that is net short ... Trying to move the market downward so they can exit their short positions? And, then go net long before tomorrow. There are a lot of possibilities. No doubt, an alarm went off in the fire house.
I am going to sit back and let the pros and the knowledgeable write about this. I feel there will soon be a story in the news on this that might give some more insight. It seems for sure, the cat is now out of the bag now, so-to-speak.
I am glad and thankful that the markets were down no more than they were. That indeed was a wad to dump just short of market close!
Skeeter
Did a major sale indicate someone knows something more serious? Maybe, but I think a more likely reason would be that you've been a run on the hope of QE3 that likely will result in disappointment.
I highly agree with what Jeremy Grantham said about the market in his latest letter - "I, for one, wish that the world would get on with whatever is coming next."
As I noted earlier today, you're seeing momentum plays reverse - Starbucks, Coach, Chipotle and others. Coach was down nearly 20% today alone. Things may muddle along in the longer term, but I would advise caution in the short-to-mid term.
Indeed I feel caution is warranted. Perhaps as you say momentum is reversing. I am sure, in time ... answers will be forth coming ... if not in words ... through market movement. Perhaps, this is the beginning of a market pull back.
Skeeter