gary_t — (08/27/2013) — 90.9% of today’s volume was on downside/ some see that as washout today/ possible short term bottom. mts2 (08/27/2013) Gaecke Report hit a buy signal in the SPX at 1631.57 today – DeMark pivots 1636.1 and 1618.9. gary_t (08/27/2013) did we a bottom today? esu / bottom today on wash/out selling? high $trin @ close – $CALL $VIX ; $17.20, even $25 strikes actively/ bought today. today’ gap down with multi-month lows on the close/ longs are trapped/more selling tomorrow? Roger_Volz (08/27/2013) I am not getting technical reads to suggest a good bottom, damn dailies just turning negative < 89sma. would be great to form a neckline back around 1550 get OS then run to make a 1672 right shoulder…give a huge top into 2nd qtr 2014. 52 new lows vs highs not crazy. worst would be sideways track to correct VST OS reads then followed by downleg to lower lows for next extreme. one saving grace is that sentiment should get really really bearish, which is best situation for a good bear trap.
Today started with an above average 1.9k ESU and 283k SPU traded on Globex, trading range was 1626.10 – 1634.50. Tuesday’s regular trading hours (RTH’s), SPU pit session trading range was 1626.80 – 1644.00 before settling at 1628.20, down 26 handles. In Asia, 9 of 11 markets closed lower (Shanghai Comp. -0.11%, Hang Seng -1.60%, Nikkei -1.51%). Europe 11 out of 12 markets were trading lower into the open (DAX -1.49%, FTSE -0.50%). India’s SENSEX was down 2.92% in morning trading and managed to rally 3.12% off its lows to close higher. Some relief in EEMs. Israeli government calling up some of its military reservists ahead of possible attack from Syria as the government passes out gas masks to the populace.
CARNEY SAYS BOE READY TO EASE IF MARKET RATES HURT RECOVERY / BOE TO RELAX LIQUIDITY RULES FOR BANKS MEETING 7% CAPITAL LEVEL / *CARNEY SAYS 7% JOBLESS RATE IS A THRESHOLD, NOT A TRIGGER….boost UK banks relax liquidity. Also, Market Vane SP1 56/ND1 70…GC moves 51 neutral…shut off from rest. Roger_Volz (07:24) correction camp huge but not really seeing bearish impulse, bulls throwing in towel…jack_broz from a 10YR option floor trader: Last night there was a block trade in the october 126 calls.10,000 sold at 20 tics. bearish play.
Posted yesterday by Sam_E (14:50) wounded yes but the bulls are not out of this ball game. Roger_S (14:50) Are you long ES and/or NQ now, Sam? Sam_E (14:51) both. the algos must make a bold move off this es to confirm. and es is not out of the woods just yet. the algos must bite on 1627. If they do not bite on 27 its 161675. The cash close traded 1628.50 area before settling at 1628.20, down 26 handles on the day.
Today’s pit session opened fractionally lower at 1627.50 -1627.00, traded a low of 1625.00 at 8:36 with the VIX trading above 17 before briefly bouncing to 1632 area. The opening range was retested and held from 9:04 – 9:10 before trending higher through the balance of the morning, trading a high of 1639.00. Sam_Easley (09:38) covered nq scalp +19 – it can surely go but the nervous algos will take the easy money. right there. the stronger ones will wait on 78 if she comes. mts2 (10:14) SPY paper buyer 20+ delta calls in sept to end of sept over 200k have traded across the board. The S&P has been down 7 out of the last 10 trading days for a total loss of 60.6 handles. On the month, the S&P has been down 10 out of the last 19 days and that price action may have added some sorely needed support – respite at the least…cartervxs: A TRUE TEMPEST…. Taper talk Rising rates… A WAR… Crude prices and the emerging markets meltdown.
The afternoon session felt almost as long as yesterday afternoon and that felt as long as Monday’s… There is plenty of chatter regarding the coming holiday weekend and the question is to leave early or stick around for the reaction to Syria? The bulls don’t want to pull the trigger too early and neither camp wants to hang on to their trades for too long. This is creating some volatility that die-hard scalpers as well as the short-term position traders enjoy.
GERMANY’S MERKEL, BRITAIN’S CAMERON AGREE SYRIA CANNOT GO UNPUNISHED – GERMAN GOVT STATEMENT