End of Day Recap

Size Paper buyers came in on the opening bell. Soon after more Paper buyers came in to the market. The locals sold and were short. As the first 30 minutes of trade continued more buyers came in. Locals, already short and holding the OR high, continued to sell to them. They did a fair job offering the price lower and there was a great opportunity to get short on a bounce off the OR high.

Then the best thing that could happen happened. Merrill Lynch came in a buyer. Merrill is like the ol’ Lind Waldock. Remember them? When these guys come in you can almost guarantee the market will trade in the other direction. In fact they are often buying the high and selling the low.

Locals, size short, were aggressive offering the price lower. Paper seemed quiet. The buyers were done and no sell paper came in. The locals should have had an easy job of it to push this market lower. But they ran into a wall at yesterdays high and it wasn’t from Paper entering the market. It was the electronic side of the market. This side can stop them in their tracks and it did. I lost my Time and Sales and Market Delta due to technical issues so I couldn’t see it happening live. But I have seen it before and it becomes more common place as institutional traders move to the screen more and more.

Nevertheless, when the locals are short and they can’t do a good job pushing the market lower, you better flatten up and pick a place to get long. You also know we are in a strong bullish market.

We corrected the Goldman news selloff, the Volcano is no longer causing flight delays and Greece sent a case of their best Ouzo to Germany’s Chancellor so all is well there until the hangover hits.

We created higher value today and closed above all OR’s, well it took the NQ and RU the aftermarket to do it. The Vix closed well below 17.00 at 15.23 UGGGG! So it would appear that we are back on track to new contract highs. Its back to "close my eyes, lift any offer and take a nap."

That all being said watch us crash tomorrow, lol

Tim Mack