It is amazing how predictable things have become. Yesterday we noted things were a bit overbought and we threw out some of our long index exposure over S&P 1029. The futures had been up 6 sessions in a row, and we had gapped up each day. Surely futures would be allowed to open down one of these days?
As we wrote:
I will take some long exposure off the table (on the index instruments) as we reach over S&P 1129. This is a grind up, not break out type of move in the market. I expect any 'correction' to be mild - if it is allowed to happen - and to hold S&P 1120 as we outlined in the weekly summary.
And is if the market is guided by the magical hand, down we fell to S&P 1120 this morning (in perfect harmony); before we are lifted right back to S&P 1125. Still no volume but the perfect technical pullback is complete and our march ever higher can now continue.
Frankly the correction (haha) was so quick I did not even have a chance to buy back the exposure I sold over 1129 below 1122 as I had hoped to do. Oh well, it is now past 10 AM which means the regular market is done for the day, and we will just go into full High Frequency Trading mode where thousands of orders each second are traded back and forth among the same few thousand computers, with rebates collected by the millions for providing liquidity while no one is actually here trading but retail daytraders.