Tuesday, May 25, 2010

Algo Bots Are Latched on to Euro

That's what I suspect, just like many others.

Take a look at these charts. The top one is today's 5-minute intraday chart of S&P E-mini futures (June). The bottom one is also today's, 5-minute intraday chart of Euro futures. Almost tick for tick, S&P500 futures responded to the movement of Euro.

The movement of Euro is more subdued than the S&P future, as currencies generally do not move as much as the stock markets. But correlation is too clear, I think.

Right now, Euro seems to be forming a bearish wedge since 9:30PM EST, while S&P E-mini is still going up.

I've been sitting on my positions, almost all gold and silver stocks. MTL, I wrote calls on it, and they are providing some cushion. I'm keeping TZA as a hedge. I added a few BP calls EOD after seeing it in green for the first time in 18 trading days, but just for a trade. I think long-term prospect of BP is bleak. My outlook for the market continues to be bleak also, and therefore my holding on to gold and silver stocks.


  1. wasup springtime-

    seen you over on skf board.... funny I googld 'algo bots', and there you were lol


  2. How's it goin over at SKF board these days? Anyone left trading? I stopped actively trading and my portfolio went up 10% in 2 weeks. Go figure.