I was just watching the sp futures in the after hours session and it was interesting to see it trickle up right into the end of the 8PM after hours session of Nasdaq NYSE etc. But then only a few minutes AFTER 8Pm the sp futures showed a big down candle on the 10 minute price chart.
How much more deviant can this market get? They pump the futures right into 8PM and have all the nasdaq and NYSE crowd all giddy about the upticks. And then right after 8Pm when they can’t do anything about it anymore they hit the futures down.
It looks clear to me what is happening here. They are trying to trap both sides and frustrate the hell out of both of them and then when both sides are all washed out, take it down big.
I forgot to mention in my previous post something which I feel is potentially very important. In the Flash crash audio of the floor trader who is describing the action on May 6, 2010 there is a very important sequence of events that occurs. If you listen to it carefully again, you will notice that the audio STARTS with the trader talking about how ‘that is too much’ possible referring to a bad tick that took market all the way down to 1040 on sp500 and maybe hit a bunch of stops all the way down. But then AFTER that he starts to cover the market action play by play which just then just cascaded back down to that 1040 level.
So I am thinking to myself the 106.50 we saw on the SPY afterhours after the AAPL earnings is a similar type scenario. Now we could possible seek that level as a magnet. It is astonishing to me how these mini flash crashes keep happening. It has one at least start to think of a very bearish possibility of total panic where one wakes up and finds the market almost literally dropping like a rock before one can even act on it.
I have to be careful about talking too bearish before ‘its really time’ but I can’t help but speculate on the meaning of these weird market behaviors. These mini flash crashes before the real ones actually occur seem to be the ultimate indicator.