Tue 16 Dec 2008
Technical Analysis Trading wrote an interesting post today on
Here’s a quick excerpt
We started the week on very light volume and a couple of inside days, meaning very tight trading ranges, even the volatility index has been coming down dropping down to about 52. FOMC Tuesday comes along, and with Fed rates already at 1% the expectations were for a 50bps to 75bps cut in rates. You wonder how much of an impact monetary policy will have on these markets at these levels, only the announcement would let us know. What an impact we had… the announcement came in and right from the start we started seeing large buy orders hitting the system. Almost 100 million shares of QQQQ traded in the last two hours, 150 million of the XLF traded as well, every pull back in the market in the afternoon was a long. Traders had to be reminded that you never test a trending market, meaning if the flow is […]
Read the rest of this great post here