Notes From the Pit

by Larry Levin

Today was another day of Murphy's Law on the floor of the CBOT for us at Secrets of Traders: the computers once again went into radio silence. Once a new PC was swapped out for a one we were able to trade the afternoon. Luckily, said PC didn't crap out right after the open otherwise we would have missed the initial drop. We sold into the early drop because of the "Notes from the Pit" that suggested the market was ready to dip.

In case you missed it here is a portion of it... (Hint: VA = value area)

COMMENTS: The VA was OL/higher and narrower again. Overall volume has clearly dropped to a "new normal" that is much lower than a few weeks ago. Advancers to decliners were about even. Attempted performance was mildly bullish and continues to weaken.

POTENTIAL RESULTS: Helo-Ben, factory orders and ISM Services data will all be released 30-min after the open. Although the volume is near the new lower "normal" it has still been slowing as the VA continues to become narrower which implies we could see a strong move down through Tue's low...

What will tomorrow bring? We wish we knew. However, there is a good chance it will be quiet (sans crazy news) before Friday's monthly employment data.



Previous Day's Trading Room Results:

Trade Date: 6/3/09

E-Mini S&P Trades*
(before fees and commissions):

1) FT sell @ 2:00pm at 927.50 = +1.50 (1 lot)

2) Algorithm positions (6)...combined Secret's and Algo total...+9.50 (Larry says: NICE!!!)


Electronic (YM) Mini-Dow:

1) None today



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