Thursday, February 10, 2011

Fading today's gap fill

The market opened with large gap downs which according to the probabilities has a low chance of gap fill. Therefore when I saw that the TF had a huge pop off the open but the other indexes weren't showing the same strength, I decided to fade the gap fill on the TF. Went short at 807.4 and covered at 804.7 for a nice 3 point or $300 per contract winner. Once again the dip buyers have showed up and we are now well off the lows (the TF is a full 7 points off the lows - that would have been a nice trade if you caught it). Apparently the catalyst was of the news that Murbarak's resignation is imminent. I don't know what to believe but who cares.......

Cumulative ticks are now positive. I think we will chop it up for the rest of the day here.

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