S & P Futures spent all night recovering from yesterday's major drop. Lots of speculation that one or two major financial players got slapped with margin calls and had to liquidate positions in equities and gold to meet the requirement. Grey swan event? Further, a number of good earnings releases this morning has boosted the markets.
--------
TNA is still down from my entry price of $40.05 but at least at the open it appears that price is close to recovery. Not sure now as TNA is dropping perhaps to fill the gap. As soon as price opened and climbed to the $39.75 area, all those traders who got long at 2:45 yesterday and during the consolidation area beforehand, are selling as their trades get close to or meet their breakeven. My play is that once that selling pressure has abated, price will continue to climb. As price climbs above the $39.75 area, there will be continued selling pressure until the sleepless traders have flattened their positions and can breathe again. Then price will rise until the next wave of freaked-out traders who didn't stop out come in to sell... and on and on. This is the market at work.
--------
At least that's my opinion. I could very easily be wrong. Right now price is holding $39.20 and not showing signs of rising.
No comments:
Post a Comment
Thanks for taking the time to comment. I'll review your remarks and post on the site assuming they are respectful.