Once Again: Sell Off

 

 

by Larry Levin
 

Yesterday I said “The crack pipes were so stuffed with Hopium Tuesday that the opposition of members of the German high court didn’t affect the market at all.  Equities gapped open MUCH higher…then died.  The first 5.5 hours of the day was terribly range-bound with no volatility at all. When new news hit the tape late, however, the market went into a tailspin.”
 
That tailspin continued Wednesday.
 
From the (AP) we read -- A three-day winning streak in the stock market came to an end Wednesday as investors worried about Europe's ability to contain its debt crisis. The Dow Jones industrial average fell 180 points. Raw materials companies had the biggest declines after prices for commodities like copper and oil fell sharply.
 
Traders focused on remarks from German Chancellor Angela Merkel suggesting that the second bailout package for Greece might have to be renegotiated. Several European leaders want banks to take bigger losses on Greek bonds. France and the European Central Bank oppose the idea.
 
Once again it was all about Europe, or Greece to be specific.  Until there is a concrete solution of the current back & forth problem (read: bankruptcy), this will continue.

 

Trade Date: 9/28/11

E-Mini S&P Trades*

(before fees and commissions):

1. FT sell @ 2:15pm at 1161.00 = +1.50 & +1.50 (2 lots)

2. Pivot buy @ 2:50pm at 1145.00 = +1.00 & +1.25 (2 lots)

3. Algorithm positions (4)

4. "Reading the Tape" positions (1) ...combined Secret's, Algo, & "Reading the Tape" total...+16.00

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