Aug 112010

Order flow from institutions is a little peculiar today in that yesterday they traded long with thr greatest volume ahead of the broad market relatively speaking. Meanwhile overnight despite the sell-off they have been buying the lows around the support we called in the 98-3 area on better than average volume. I would agree that we may be a bit oversold and other traders may be too quick to panic on the “lack’ of Fed help or news for lack of a better term. That said it will be tough to outrun the carry trade which almost always calls the major turns and it is screaming short. The Euro is hammered and the Yen is at record 15 year highs. A double whammy which pulls the backstop out of any risk appetite trading and forces long traders to truly love the market with no interest arbitrage to fall back on. So I do think the trend remains down in the swing term but I would bet we get a bit of a pop up this morning before resuming to the short side. Treasuries rally as well and Crude continues to slip with the rigs preparing for the impending storm. Careful at 10:30 on the inventory number today. Not much else to say other than we have some great levels to play with today. Hopefully we can get some good movement finally that doesn’t coincide with news timing, etc. from now on. As you all know the timing relative to levels has been a bit tough for quite some time now…

 Posted by at 8:57 am

  4 Responses to “8/11/2010 Pre-Market Commentary”

  1. RG
    Problems? ” Timing relative to levels has been a bit tough…”? Hmmmm. You better tell NJ – maybe he can help!

    • LOL, I guess ‘quite some time’ extends back into July. The end of July was pretty tough but August so far has had some good rotational mornings with 8/11 being the first real trend day.

  2. Where can I find out more about the carry trade you have referenced. I’d like to set it up in MarketDelta to see for myself. Thanks! James B

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