Here we have it again, the futures are doing their standard 8pm ET ramp, 1 and 2 lots at a time. You all know the futures markets overnight are very thin, and are easily moved, they have always been this way. What has not always been the case is the extreme lack of liquidity on the offers. The lack of liquidity and market makers to keep the party fair combine to form the perfect manipulation medium.
The regular session equities market is a trillion++ dollar market not easily manipulated by one entity, unless collusion is involved. cough, federal reserve banks, cough.
So now that you know the overnight futures markets are thin with very little notional value lets draw a few
parallels. If the futures are walked up 10 handles above the NYC close, what happens to the cash market when it opens? For the newbies of course it gaps up because cash is priced on the futures.. and vise versa.. So now that we know the cash market gaps in relation to wherever the futures markets are pushed overnight, we know why the market is up 50% from lows, 80% of the 50% move is from gaps up. How many times have we opened flat on the SPY and then traded up 2%, maybe 5 times in 2 years. The days we gap up hard we trade in a very tight upward skewed da. 100$ million in futures manipulation places a trillion dollar market on a shelf, it cannot fall off the shelf because there is not enough liquidity and participants to knock it down. GENIUS!
Yeah right its total bullshit. What would happen if the crude oil market were like this, we would have 1000$ oil?... exactly it wouldn't and does not happen. Though its all gravy to do this in the equities market cause what is better than an up market? Well, probably some more Kool Aide.
|prints tonight as the ramping started|
NYC closed weak as shit, Apple was slapped off all time highs to the tune of 8 points in the last hour of trading as CNBC was interviewing the president of the Czech republic?? Who gives a shit what the hell is going on there, we got a shit load of problems over here...
It was not till i went ape on the twitter stream telling cnbc to report the news, that Brian Shactman got on and finally says the market is coming off highs.. Had to pull their damn teeth to get them off their bull horse, i bet Maria cried in her posh NYC office cause the market closed red. :(
Let see where we open tomorrow. If we gap up from NYC close you know why....