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Sneaky ES Takes Out Day's Highs In Volumeless AH Session

Tyler Durden's picture




 

Today's market meltup was predicated by ongoing abysmal volume. After an October which was one of the lowest volume months in the past two years, November is shaping up to be even worse. It is thus only expected that when all volume disappears, such as when the market closes, that ES will surge. Sure enough, the Emini takes out the day's high the first trading second of the AH trading session. Perhaps if someone actually traded stocks, there would be those who care.

 

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Tue, 11/02/2010 - 16:12 | 694189 Mark My Words
Mark My Words's picture

Confounded Assholes!

Tue, 11/02/2010 - 16:15 | 694194 firstdivision
firstdivision's picture

Some nice arb plays there.

Tue, 11/02/2010 - 16:19 | 694203 Panafrican Funk...
Panafrican Funktron Robot's picture

You would think so, but stat arb has been basically a casino since early April. 

Tue, 11/02/2010 - 17:11 | 694341 ZeroPower
ZeroPower's picture

Vol arb is the name of the game on all major desks

Tue, 11/02/2010 - 16:18 | 694202 RobotTrader
RobotTrader's picture

Wow, new highs for the REITs....

Tue, 11/02/2010 - 16:19 | 694204 Cognitive Dissonance
Cognitive Dissonance's picture

Damn you Waddle & Reed. Damn you to hell.

Tue, 11/02/2010 - 16:35 | 694253 etrader
etrader's picture

D.E Shaw's skeleton crew must also be out off the office.... :>

Tue, 11/02/2010 - 16:36 | 694255 threefingerscam
threefingerscam's picture

In the spirit of Dodd-Frank reduces to Donk, perhaps Waddell & Reed is alphabetized and converted to ReWad , pronounced RE-WAD as in "shoot your wad".

Tue, 11/02/2010 - 16:44 | 694267 AR15AU
AR15AU's picture

How about - markets just got WADDED

Tue, 11/02/2010 - 16:53 | 694307 AR15AU
AR15AU's picture

WADDED - /?w?d?d/ verb

1. Any change in price of greater than 1%

Origin: SEC's 2010 revelations about the power of Waddel & Reed (all your price are belong to us)

Tue, 11/02/2010 - 23:22 | 695051 jedimarkus
jedimarkus's picture

I guess Waddle & Reed had to buy a 100 lot....

Tue, 11/02/2010 - 16:19 | 694206 billwilson
billwilson's picture

NOTHING surpises me any more. The goose that lays the golden egg has been slaughtered.

 

 

Tue, 11/02/2010 - 16:29 | 694237 Sudden Debt
Sudden Debt's picture

That was some damn good eating!!

NOW WHAT'S FOR DESERT?!!

 

Tue, 11/02/2010 - 16:46 | 694284 traderjoe
traderjoe's picture

Or dessert? :)

 

Tue, 11/02/2010 - 16:21 | 694212 the not so migh...
the not so mighty maximiza's picture

more fun playing craps

 

Tue, 11/02/2010 - 16:24 | 694219 LongSoupLine
LongSoupLine's picture

Don't worry, I'm sure the SEC's got our back and is ALL over it.

Tue, 11/02/2010 - 16:24 | 694220 Dadoomsayer
Dadoomsayer's picture

banks getting more free money to throw at the markets.

there is no more moral hazard.

 

 

Tue, 11/02/2010 - 16:40 | 694262 plocequ1
plocequ1's picture

Bingo!!! Thats all it is.

Tue, 11/02/2010 - 16:27 | 694228 Bernard Marx
Bernard Marx's picture

FWIW - Damage was already done - first SPX close above 200 wma since June of 08

Tue, 11/02/2010 - 16:30 | 694239 Yorick7
Yorick7's picture

how is this a surprise?  elections and fomc, why would anyone be trading?  and the weak side is higher stocks short term.  why moan, just make some money off it.

Tue, 11/02/2010 - 16:32 | 694240 gkm
gkm's picture

Actually JPM was a big buyer at the close.  1000 bigs.

Tue, 11/02/2010 - 16:33 | 694247 depression
depression's picture

I made the mistake of looking away from the chart for that split second and missed the whole "rally".

Here's a question for your captcha: How many ES contracts can Brian Sack buy with $ 1 Trillion USD ?

Tue, 11/02/2010 - 16:46 | 694279 hambone
hambone's picture

Can anyone explain the rationale and usefulness of the After Hours market?  I can see why it's great for those who have a personal playground to trade on info the rest of us don't have and position themselves for tomorrows big moves while retail jerks wait to get whipsawed on the open.

Serious, is there a good reason?

Tue, 11/02/2010 - 16:48 | 694292 traderjoe
traderjoe's picture

More money for the exchanges, brokerages, etc. (trading fees)? And yes, for the big players too...

Tue, 11/02/2010 - 17:15 | 694349 ZeroPower
ZeroPower's picture

Actually, as lame as it sounds, the p/m and a/h session are a way to level the playing field for retail.

Since all PMs can do trades at whatever time of the day they please (but in reality are active between 4am to 8pm EST), those extended sessions (depending on your broker) allow retail folk to come in and get slaughtered/traded with.

Tue, 11/02/2010 - 17:13 | 694344 wiskeyrunner
wiskeyrunner's picture

Yep, buy the close sell the open, stock index futures will float higher overnight on no volume. It's so easy a cave man can do it. Fact index futures rise overnight 90% of the time. Very seldom will you wake up in the US and hear on any financial network "STOCK INDEX FUTURES POINT TO A LOWER OPEN"

Tue, 11/02/2010 - 23:24 | 695056 jedimarkus
jedimarkus's picture

then once the cash market opens you can simply buy any selling after the first five or ten minutes the majority of the time as the HFTs begin their mandate...

Tue, 11/02/2010 - 23:24 | 695057 jedimarkus
jedimarkus's picture

then once the cash market opens you can simply buy any selling after the first five or ten minutes the majority of the time as the HFTs begin their mandate...

Tue, 11/02/2010 - 17:21 | 694362 Robslob
Robslob's picture

Except for Friday at the close leading to Monday's open...ooops, wrong black Monday event...that was for the accelerated shopping season this year before the 99 weekers run out of my tax dollars.

Disregard

Tue, 11/02/2010 - 17:35 | 694387 Cdad
Cdad's picture

Sweet....2.9 million shares of SPY below the LOD @ $118.57.

Computer cheaters, bitchez!

Tue, 11/02/2010 - 19:22 | 694545 espirit
espirit's picture

When there's nobody left to play, the HFT's will continue to rachet the markets even higher still.  Makes you want to put your money in...???  Still working on that one with my PM's.

Tue, 11/02/2010 - 20:26 | 694685 Rick64
Rick64's picture

Quite a pump show. I try not to trade the ES after 2:30 CT. 

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