The ES has stabilised somewhat. The moves over the past two weeks-odd have been pretty wild, even for those expecting a bit of excess with the lower volumes of the beginnings of the summer season.
The 6% upswing at the end of June to the start of July was a result (IMO – there are plenty of other theories/speculations) of an excessive amount of negative sentiment, pessimism that had been rewarded in preceding weeks but that was past its prime – knowing when to stop extrapolating the current trend is a handy skill (one I am yet to master with any great consistency, but I’m getting there).
Shorts were left scrambling (but only a bit: Not a Short Covering Rally), & windows were dressed (I didn’t think so). Whatever it was, the pasting of the shorts resulted in a situation where once the markets started to fall after the very poor NFP numbers, and then receiving more bad news out of Europe over the weekend, there was less support than there otherwise would have been (shorts buying back in) in the fall that stabilised yesterday. One of huge benefits of short-horizon views and trading is being able to switch with these shifts in news and moods. Being a short-horizon trader your views MUST be flexible, by necessity; I think this is hugely advantageous.
OK, onto some lighter fare.
This is everywhere:
We Are Traders – A tribute to all those trading the markets
Its a commercial, an ad. For a brokerage or something, I think. It is going to be hugely lambasted. Cringeworthy. LOL.
My first thought was of Effie Stephanidis (Mary Coustas): “How embarassment”.
For something a little more thoughtful, check this out:
In Praise of Speculators
But it occurs to me that today, Britain ought to be sending George Soros a heartfelt thank you note, along with maybe a complimentary fruit basket and a really nice bottle of wine. If Britain had managed to muddle itself along into the euro, it would now also be lashed to the fate of the PIIGs.