Tuesday, February 5, 2008

Virtual Office, -$2006. SPX, -37.10, 1341.70.

Evolution, $1044 on 38,600 shares traded.
OBAT, $44 on 19,800 shares traded.
Misstrade, no trades.
Wincity, no trades.
Denarii, -$30 on 1600 shares traded.
Timmay!, -$780 on 1500 shares traded.
Me, -$872 on 23,400 shares traded.
Dehtrader, -$1412 on 9620 shares traded.

Not only was the VO smoked today, but my real life office got smoked too. The best traders dropped big money today as absolutely nothing seemed to work, longs or shorts.

For a day where the Dow lost almost 400 points and the futures got clobbered, volume was suspiciously light. This led to a trading problem.

First of all, fills were shitty. Second, due to the light volume, it was easy to say "The selling is somewhat weak. There's no volume behind it." So people were hoping for a bounce that never materialized. They got sucked into the long side.

However, it wasn't that the sellers were weak, instead it was just that there were NO BUYERS.

And so what we learn is that the short covering rally has been exposed as just that... short covering, not legitimate buying.

Were there people willing to actually buy this market, they would have stepped in today. Instead, the sellers just took the market down methodically with nary a bull in sight.

Where were all the CNBC bulls today anyway?


tradelikemike said...

You're dead on. Just a slow drift into oblivion. UGH.

Bluedog said...

I think I was the only buyer in the market today. ;)

I bought some ICE and MELI.