This is where I think you see the equity market putting in a bottom. The Dow put in a 10% round trip intraday today. Look like all the traders where making the same technical trade. As soon as the down broke below 8000, it immediately shot up for the rest of the day and closed nearly 7% higher for the day.
Wild ride at the ponies!
Wild Ride Today
Wild Ride Today
they call it 'buy programs' or 'corrections'
these levels of support have triggered automatic buy programs that will effectively boost the dow back up...day traders need be cognizant of these 'support' levels.
OR
corrections in that traders sense a sentiment of panic and/or 'going overboard' and see the value in a purchase...sellers could be motivated by limiting loss, by cash needs, or simple capitulation....in any case, the 'correction' is a bounce back due to an exaggerated response to an event and/or occurrence.
these levels of support have triggered automatic buy programs that will effectively boost the dow back up...day traders need be cognizant of these 'support' levels.
OR
corrections in that traders sense a sentiment of panic and/or 'going overboard' and see the value in a purchase...sellers could be motivated by limiting loss, by cash needs, or simple capitulation....in any case, the 'correction' is a bounce back due to an exaggerated response to an event and/or occurrence.
Wild Ride Today
Yep, and predictably, the market is down today as people take profit from yesterday's pop.
Yesterday reminds me of a presentation I sat in on by one of RJ's fixed income traders last year. He made a comment that they were largely on the sidelines of the Treasuries market at the time, because they didn't like the current market action. He then said that if the current yield went to a current level, then they'd be going in and buying. I forget what the yield number he stated was, but sure enough, as soon as the yield went down to that level, the FI markets went apeshit. Guess other folks had the same target as him.
Yesterday reminds me of a presentation I sat in on by one of RJ's fixed income traders last year. He made a comment that they were largely on the sidelines of the Treasuries market at the time, because they didn't like the current market action. He then said that if the current yield went to a current level, then they'd be going in and buying. I forget what the yield number he stated was, but sure enough, as soon as the yield went down to that level, the FI markets went apeshit. Guess other folks had the same target as him.
Wild Ride Today
i'm sure the yield targets he had in mind were directly tied to where those treasuries were trading in the overnight repo market
Wild Ride Today
I took a look at a two year chart to refresh my memory and I'm pretty sure now that his full comment was that they wouldn't be buying until the ten year Treasury yield broke 5%. Sure enough, that's when all the excitement of this past year and a half let loose. Happened in June 07 and I listened to his presentation in April of that year.