Wednesday, November 4, 2009

Missing the gap up

I trade to try to catch as many moves as possible, up and down.  But tonight's gap up is a move that I should have captured based on post-election tendencies, pre-Fed, and the European markets having gone overboard on the sell side yesterday.
Also like in 1994, after the Democrats took over the White House, the Republicans had a lot of success in the following election.  In general, there is a tendency for the other party not in the White House to gain seats in the next election.  I should have expected another repeat for the Republicans. And we all know that the market loves Republicans, at least in the short term.

Unless something horrible happens in Europe, this will be a sizeable gap up and will probably not let anybody in unless they pay up.  And I will not buy into a sizeable gap up in the morning just to get long for a few hours ahead of the Fed.  If it dips, I will buy it but I'm not chasing this market on the long side.  In fact, were it not a FOMC meeting day, tomorrow's gap up would be a good short set up for a quick trade. If we trend up ahead of the announcement, I will short right before 2:15 PM to capture the expected initial drop.

1 comment:

Anonymous said...

Man invented god 100,000,000,000,000,000,000,000,000 years ago.
The gods used Christainity as temptation to repel people away from themselves, the pentagram being the holy symbol of the gods, and of their Chosen One's teachings, the Second Coming, Lucifer.
Don't forget::::It is not a house of Jesus.
Christianity is evil. It is responsible for slavery of Africans. It is responsible for this wickedness known as the United States.
There is a major difference between how Europe and the rest of the world were inflicted with xtianity:::Push vs. pull strategy. As a result, expect the "1000 years with Jesus on Earth" may be reserved for the Europeans and few others who were forced into this evil religion:::The god's management of culpability defines the level of compensation everyone receives.
The god's primary goal with this Situation was the minimization of culpability arising from the 20th century and liberal counter-culture. Everything I have taught is true. Now that this Situation is complete you people have been taught. The gods are no longer/minimally responsible from this point forward, pitiful "reach around" compensation for ruining your Planet Earth. Their empty promise "We'll make it up to him." has been met with similar inadequate compensation, and the gods will find a way to wash their hands of this obligation to me as well.
Morality is irrelevant. If they were honest how little they ultimately intended to grant me my sacrifice would have ended long ago, but they used this lie "We'll make it up to him." to further my misery, just as they do with all of you, adhering strictly to positioning, with absolution of obligation on the agenda for the future.
My experience is obcene.
The gods may be immortal but they are not divine.