I must say the market surprised me today. I was expecting a redo this morning of what happened yesterday as Bernanke testified to the Senate Banking Committee. Yesterday the market picked a range and became volatile while Ben spoke. Today during his testimony to the House Finance Committee, the market picked a direction; up… Thus I expected some volatility and rotations at least through Ben’s testimony and was proven wrong twice. I faded the ES in the DTG 97.00 level and then again in the DTG 03.25 level. As you can tell from the price level recap above, shorting against the market today was a losing proposition. The first trade opportunity at the DTG 97.00 level is today’s example trade. This trade turned into a coin flip with the New Home Sale report at 10am EST, but I thought that would be tempered by the uncertainty of what Ben might say.
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