Mar 242010

Pretty much as expected this morning. We stayed in a tight range ahead of the new home sales news. The number was just a hair under consensus and was mostly priced via the early morning sell-off just after 6AM EST where the majority of the institutional selling was. We figured if we waited long enough we would get our move down to the OL and we did finally after 11:30. Normally we would trade this time of the day as it gets pretty thin but open interest popped up a bit thanks to that little false breakout short just ahead of the 62 handle. The order flow was textbook on the failure and we were able to get a half unit fill at 62.50. We managed the position carefully in case there might have been a shot at getting back into the balance area around the 65 handle, but it stalled and we came out with a point at 63.50. Good day for watching order flow in your replay system to get practice with spotting false breakouts and non-exhaustion failures. There was one of each this morning.

 Posted by at 12:00 pm

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