The algo's probably see those pivot points as high probability trades..They almost always seem to work.
In practice it's much harder than it looks, of course, but technically so is anything. All I know is that whenever a stock is down trending; once it hits a strong pivot point, it almost always seems to tick back up..
In practice it's much harder than it looks, of course, but technically so is anything. All I know is that whenever a stock is down trending; once it hits a strong pivot point, it almost always seems to tick back up..
Comment:
Again, though, it's not as easy as it looks. Buying on the way down is dangerous. You're trading against the trend, which long term, isn't usually a good strategy to take..
Comment:
ZH does a good job of breaking down what might have been responsible for this spontaneous reversal in the futures markets
"Futures Soar After China's Plunge Protection Team Props Up Markets" MAR 09, 2021 - 7:51AM
"Sometime trading really is this easy. Literally minutes after we predicted last night that it was just a matter of time before central banks step in to halt the rout..."
Tyler Durdan, Twitter, March.8th, 8:54pm
"In theory a continued collapse in the QQQ will crash the S&P, DJIA, and everything else.
In practice, the Fed will never allow it. We are within 2-3% of the Fed's red line for QQQs"
... Beijing did just that when shortly after China's markets reopened on Tuesday (a little after 9pm ET), Bloomberg reported that state-backed funds - i.e., China's Plunge Protection Team - had intervened to shore up the market in morning trading. The funds, known as China’s “national team,” had stepped in order to ensure stability during the National People’s Congress in Beijing, Bloomberg reported citing "according to people familiar with the matter" with a Hong Kong-based trader saying entities linked to mainland funds were actively buying shares through stock links with Hong Kong Tuesday morning.
And just like that, moral hazard was baaack front and center.... yet it wasn't enough. While the news helped Chinese stocks erase losses of as much as 3.2%, declines then resumed in the afternoon and China's CSI 300 Index closed about 2.2% lower with Kweichow Moutai the stock that’s become an indicator of sentiment in China’s mutual fund industry, falling 1.2%...
"Futures Soar After China's Plunge Protection Team Props Up Markets" MAR 09, 2021 - 7:51AM
"Sometime trading really is this easy. Literally minutes after we predicted last night that it was just a matter of time before central banks step in to halt the rout..."
Tyler Durdan, Twitter, March.8th, 8:54pm
"In theory a continued collapse in the QQQ will crash the S&P, DJIA, and everything else.
In practice, the Fed will never allow it. We are within 2-3% of the Fed's red line for QQQs"
... Beijing did just that when shortly after China's markets reopened on Tuesday (a little after 9pm ET), Bloomberg reported that state-backed funds - i.e., China's Plunge Protection Team - had intervened to shore up the market in morning trading. The funds, known as China’s “national team,” had stepped in order to ensure stability during the National People’s Congress in Beijing, Bloomberg reported citing "according to people familiar with the matter" with a Hong Kong-based trader saying entities linked to mainland funds were actively buying shares through stock links with Hong Kong Tuesday morning.
And just like that, moral hazard was baaack front and center.... yet it wasn't enough. While the news helped Chinese stocks erase losses of as much as 3.2%, declines then resumed in the afternoon and China's CSI 300 Index closed about 2.2% lower with Kweichow Moutai the stock that’s become an indicator of sentiment in China’s mutual fund industry, falling 1.2%...
Comment:
At 7:25 a.m. ET, Dow E-minis were up 167 points, or 0.5%, S&P 500 E-minis were up 40 points, or 1.05% and Nasdaq 100 E-minis were up 279 points, or 2.3%. Tesla advanced about 4%, while Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp jumped about 2% each in early trading. It wasn't just Tesla: all electric-vehicle firms rebounded Tuesday amid a slew of industry news that could impact their shares: Nikola +4.7%, Nio +4.7%, Li Auto +4.6%, Xpeng +6.4%, Workhorse +3.4%, Lordstown Motors +6.3%. Cathie Wood’s flagship exchange-traded fund Ark Innovation ETF, which has Tesla as its largest holding, gained 4.9%. Both are set to open higher after five straight days of declines.