Short on a longs trend, quite a day. The mini contract went more than 21 points straight up today after it broke 2584 somewhere around noon here. And it was fun, money never seemed to end for the bulls so ES (EP) ticked higher almost minute by minute and hour after hour. While it did not crossed my mind we will have such a day today and basically did not intend to trade at all I found myself in a short position sooner than I thought. Of course my position was wrong and, of course (again), by the time I`ve observed the trend which seemed like neverending my loss got a little bigger, acceptable nevertheless. As I was saying yesterday, the trend is your friend.
Some are either very convinced about the fact that ES (EP) will go higher either very stupid, time will tell. And I shall explain myself. Take a look at the picture bellow
The ladder is about 4 ES (EP) points, and the volume required to break one point is about 4K contracts which (for anyone investing on the long term) means 4K multiplied with the margin required to buy one contract, the result would be a few millions to move a point. Not a big deal, today it moved 20 points almost without breathing, not a big deal either however that's not the issue, the issue might be the chart bellow (the last bar is delayed it broke 2600 today as I was saying)
While I do not know if latest buyers are right or silly for buying, personally I never buy in such cases usually its required to breath more and I see buying now very dangerous for the reasons I`ve explained in the chart, ES (EP) is a contract based on a stock index after all and long is the way to go with stock indexes (short are big gamblers, many times the big winners though)
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