Thursday, October 27, 2011

Tonights S&P500 Chart. Post Insanity Rally (SPY)

5 min ES 
notice the CLOSING print volume of over 139,000 contracts. thats HUGE. i would expect to see some profit taking into asia open and into europe.. the dollar got rocked today, it usually has a reactionary move back up..

--That being said things have got a bit weird in the last week, lots of traders blown out. lots of traders are drunk on profits which in all honesty were derived from an offerless market.. all beta follows the wave... except NFLX.

last time we ripped up to these levels nearly non stop, we had a violent move down in a swath of profit taking.. expect this. keep your stops tight if you long and always protect profits like a boss.

15 min ES