Most of the rallies since our top call on Apr 30 have been followed by sharp sell-offs during the after-hours. This obviously makes it very difficult for trend followers who don’t trade in futures. But, it also smacks of insider/specialist positioning — sucking in those playing a rebound who are then stuck the following morning or the Monday following OPEX in a losing position. 
It reminds me of that great scene in Trading Places where Louis Winthorpe III (Dan Akroyd) and Billy Ray Valentine (Eddie Murphy) snooker the Duke brothers in the orange juice pit.
While yesterday’s action was apparently a headfake, it remains to be seen whether or not it represented a meaningful breakout. Again, it’s doubly hard to tell on OPEX.
continued for members…
Sorry, this content is for members only.Click here to get access.
Already a member? Login below… |