Well it's almost 10 AM and you know what that means; another day the mission accomplished banner can be hoisted. The overnight futures buying has us up our traditional 0.3% and now HAL9000 and his band of computers can trade back and forth the rest of the day.
This is an actual email I sent to a reader at 3 PM yesterday as I debated whether to stay in my index longs.
my assumption is they will stop me out later today then jack up the futures to 1123 or something tomorrow
It has now become so predictable, I can actually guess to the point where they will move the market ahead in the overnight session. Again, this is not new - it's been going on for much of the year.
I am considering a strategy to only be long the market overnight - you get killed a few times like Dubai Friday - but other than that, you can milk 0.3-0.5% almost daily. It doesn't matter if the economic news is good, bad (GDP revisions, new home sales this week), or benign. The market will be bid up, as someone with an agenda cannot wait until 9:30 AM to buy stocks.
(our fellow escaped the Matrix blogger, Zerohedge posted similar findings yesterday - I've been complaining about it for much of the year; if I had historical futures data I would of done a comparison of how much the great rally of 2009 was in premarket versus during market hours myself. I don't have a problem with the days we surged on positive Chinese data overnight, or Goldman Sachs beating estimates but so many days we had bad economic news, or no news and futures were up 0.3%, 0.4%, 0.6%. Just funny)
Obviously we are back to our index longs... just shaking my head at what 'the market' has become. A breakout is a breakout, no matter how it was accomplished, and those in power know we're all chasing the carrot they have so perfectly created. Until further notice, S&P 1120 will be the new floor. We've cleared the 6 week box, and the path to S&P 1200 is predestined. Apparently, literally.