Emini Trading Update – Thursday 16 Feb 2012 (17:59)
Discussion about “Crazy Ivans” in today’s video – and thank you to Byron A. for the terminology.
The “Crazy Ivan” term comes from the movie “The Hunt for Red October” with Sean Connery and a bunch of stars. During the underwater chase the Russian submarine makes a sharp turn around to look behind it with sonar. It freaks out the chasing submarine commander who doesn’t understand what the Russian sub is doing.
In the market, a “Crazy Ivan” is a quick dive in the opposite direction – 2 to 4 points but done really quickly. It freaks out the trend followers and causes them to exit and reverse positions. Then the market continues on it’s way – having run the trailing stops and wrong-footed a bunch of traders.
Today, we got 2 moves like that. One just before 9 and one just after 10. In the video I was in Long when the second one happened, between 12:30 and 14:30 on the video, and you can hear my stunned silence as I’m trying to process what the market is doing. Initial panic, try to exit at par, then when support holds and the Professionals buy in reassess and decide the market is now ready to break to new highs. In fact the market ends up 10 points higher!
Link of the day …
Another great interview from Paul Jay at the Real News Network about the day-to-day struggles of the Greek people. How can prosperous countries like Germany and France stand by and do this to their European neighbours?
If you’re reading this article via email or RSS reader, then follow this link to view the Emini Trading video on the website. Good luck with your Emini trading.