Silly Volatility Spurred by HFT: Head to the Sidelines

High Frequency Trading has made trading the EMini a dangerous proposition.

Ditto for the Mini Dow. There Was a 600 pt trading range over night? Seriously?

These market manipulator programs exit at the discretion of the exchanges.

These HFT pay for market access by having their servers closest to the exchange servers.

Professional traders have known about this beginning in 2003 or 2004. It came full circle in 2008. Here it is 2011 and the average person is learning that its not a good thing for 1) liquidity, 2) transparency, or 3) Price discovery.

I predict before this is […]

End of Days? or Buying Opportunity—

As scary and counter intuitive as it seems, 10,785 is an indicated buy target for Dow Futures.

Take the low last July at 9494. Move up to the high at 12,873 just 2 months ago in May…10,785 is a 62% retracemnt of the 3,373 point rally.

Rally it close to 4K points and you get no one’s attention.

Break it 2K points and you have tv talking heads looking for razor blades, arsenic and slip knots.

If you’ve been a reader here for a while, you know I like to fade the herd.

Now’s your chance.

Buy it. Be willing to […]

10,800 buy target hit… Lock in Profits

Currently down futures are at 10915. Buy order at 10,800 was filled. The low was 10,791.

Lock in profits and look for a bounce. The whole world wants to sell the Dow. If you had the order resting, you are now long and have 1K paper profit.

Sell 1/3 of your position. Puts sell stops in on the other 2/3.

Interestingly, CZ, December Corn holds tight at 655 and November Beans hold at 13.00. I have to continue to want to be long grains.

A market that holds up when it should be melting is indicating underlying strength.

That strength […]

11,038 is a buy in Dow futures 1st time there

11038 should be an entry point to buy. This 200pt lower opening is Europe and Asia pounding on markets after s and p downgraded debt of us on Friday night after the close . Unless u have been under a rock for the past 2 months this seems like it was a forgone conclusion. O think this is more of an academic argument now. Given that stance than this break is another opportunity to scalp the markets silliness.

Remember … Last July 2010 we went to 9500… why couldn’t we go there again?? In march of 2009 we we went to 6500… Remember that?


Dow Cash 360 pts off its Morning Panic Lows

The average profit on the longs bought this morning at 11,200 is 288 pts. That’s $2,880.00 dollar profit on every one lot $10.00 contract.

Just a quick note before I head out for the weekend.
To all my regular readers, a heartfelt thank you.

If you like my trading recommendations, consider contacting me via email directly at

I look forward to hearing from you.
I am an executing broker here in Chicago IL.


UPDATE: Dow CASH 250 pts higher from its low :)

Dow futures are 400 points off their lows. The low was 11,088. Buy area was 11,200-180… I hope you bought there.
If you did, take profits on 1/2. Reward yourself. Make sure that your winning long NEVER turns into a loss. Put a protective sell stop above your buy level and fold your arms.
I like taking profits on 1/3 to 1/2 of the position. Fold your arms.

On a second note, I think you MUST buy some CZ futures or options if we settle above 715.
The corn has held up AMAZINGLY well during this stock index correction. That suggests underlying strength.

That […]

Dow Futures stop at 50% Retracement- Buy-Buy-Buy

The low overnight was 11,221. This is within 50 ticks of a perfect 50% retracement of the move. What move? The move that started LAST July 4th weekend, July 2010, where we posted a low at 9506. We rallied to a 3 year high just 2 months ago at 12,873. These are futures prices. A 50 % retracement was 11,183. Last night’s low at 11,221 was close enough for horse shoes.

If you check my old blogs, this is the level I was hoping to get long at.
Act accordingly.
Place your sell stops at a level where you are comfortable with the loss. Risk […]

This is why we use stops :)

My stops saved me today. I bought earlier and was stopped out. I had been short from 12,200 though, so its still a decent trade.

11,235 is my buy target. I have resting orders there. That is all.

I think we could melt down to 10,848 on an extreme puke from panicked “investors”.
Its always interesting how “investors” turn into panicked traders when they are looking at 10% draw downs.

Earlier today I said CNBC would be looking for razor blades and slip knots for its analysts.

Tomorrow’s unemployment number will be a big bust most likely.

Sit tight. Pick your spots, and for God’s […]

1024 AM 11,625 target hit in cash dow,

We reached our first buy target. 10625 in Dow Cash. This is the first level I want to buy.
I had been short, if you check my postings, when the Dow was trading at 12,200.

I am getting long against the March 17th low at 11,451. We were here just 4 months ago.

I am covering shorts here. I am going long, risking 150 pts on a downstop.
That is all.