From the onset I have to apologize for not posting for two days, but we a serious illness in the family and that event, along with the time I had to devote to trading, kept me from posting. But here are the charts.
The first thing you will probably notice is that on very volatile sessions I switch from trading the ESZ8 to the YMZ8…while this may be some psychological disorder brought on by years of trading, I have always switch to the YM because there is less black box and technical trading on the YM. Okay, that is what I think and I cannot for one second substantiate the fact. But psychological I always seem to trade the dow futures contract than the S&P contract on chaotic days.
I will not rehash the troubling events that have led to the unprecedented turbulence we have endured this week and in the past weeks,,,,,,Fannie Mae, Freddy Mac, Lehman Brothers, AIG, Bear Sterns….and a host of potential corporations that are bound to join this list before this unprecedented event comes to a close. In my opinion, the derivative issues are now just coming to light and the full extent of the pervasiveness of them is yet to be determined, let alone the level of leverage each individual contract assumed. It not going to be an easy or painless task and it is going to take a very deft touch to see us through this mess.
