What can we say that we didn’t say during the day as it happened? We said in the View this morning that 1943 was the level to break and there wiould be buy stops above it. Just before 10am, the market rallied sharply, broke above 43 and retreated after touching 1945.
We had called for 1946-48 as an upper limit, but warned our room and our Twitter followers not to hold positions for too long. After the market digested its up move (and traders digested lunch) the afternoon saw us complete a run to 1946.25.
Today was a perfect example of our old trading rule: “No stops go untouched in the S&P.” We were glad to be able to warn our readers in advance about the buy stops that would drive the index arb algorithmic buy programs to push prices upward.
You won’t get that kind of actionable information in real time anywhere else: not CNBC, not the mainstream financial media. They’re usually looking for things that might (or might not) move the market. It makes for good TV and a lot of intellectual debate.
We’re looking for what’s actually moving the market. That makes for profitable trading.
HIGH: 1945.00 Mid-Morning
LOW: 1934.00 Early
LAST: 1943.00 UP 12.6 Handles
TOTAL VOLUME: 1mil minis; 3.5k bigs
MOC: BUY $350 mil
MiM was going up the whole time…
FOR TOMORROW:
Jobless Claims
Import/Export Prices
EIA Natural Gas Report
5yr TIP Announcement
30yr Bond Auction
FED Balance Sheet and Money Supply
MTS Rule: No Stops Go Untouched In The S&P 500
