I know its mostly computer black boxes that are just using FESX and DAX movements to automatically buy or sell the ES, but after a trend down day on Friday and running up into 1083 resistance, its a poor risk reward buy in the wee hours EST.
It is difficult to get the ES futures gapping up more than 5 points in this low volatility environment, so what kind of risk reward is ther for buying those contracts at those prices ahead of the US market?
I still think we go lower in the first hour of US trade.
Monday, October 26, 2009
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2 comments:
actually since we had small gap-up, there could be sell-off later in day...better then gap-down, which would be bought.
I agree, we could have strength midday and then sellers emerge near the close. But this action smells funny to me and we can go right back down. Just seems like a short squeeze.
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