Nervousness?

by Larry Levin

The market traded as "thinly" as I have seen it in many years even though the ES volume was high, notching a 3.5 million trade-day. Although the overall volume was high, traders were placing multiple small trades into the market rather than individual large trades. The result were massive and sudden reversals from the open to the close.

Consider this - during the preposterously low volume rally there were many days with a total range of just 5 or 6 points from high to low. Today it was common to see 3 point reversals in seconds, followed by another reversal of 5 or 6 points...followed by another 8 point reversal...all happening in a matter of minutes.

Some periods of the day saw rather bizarre trading which makes me wonder: is the market nervous? I wonder this because the communist unions of Greece (this is not a political comment about unions in general - just Greece) said they have organized more mass marches against the austerity measures. The unions actually want even more money with even less work. If they don't get it - they have warned of violence and bloodshed in the streets.

If this happens on worldwide television Thursday, it would be a sign to politicians and traders everywhere that the measures needed to reign in the Greek debt problem will fail. It could mean the Greek people would overthrow its government, default on its debt, and leave the European Union.

Although this might actually be good for the people of Greece, it wold be terrible for the banksters and therefore bad for politicians.

Does the nervousness mean the S&P will revisit the low of the "Flash Crash?" One wonders.



Previous Day's Trading Room Results:

Trade Date: 5/19/10

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

1) No "Secrets" trades filled today.

2) Algorithm positions (23)

3) “Reading the Tape” positions (10) …combined Secret’s, Algo, & “Reading the Tape” total… +14.50

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