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The Underground Trader: Baseball, Bees, Beach, BBQ, and Bollinger Bands

September 7, 2010

by The TopStock Team

The Underground Trader

We wish to introduce a new periodic feature to TSP Flash Alerts: The Underground Trader. These posts are authored by a long-time friend and colleague who specializes in trading futures and options. The Underground Trader is a very close watcher of the indices and is a market junkie who cruises message boards, trading groups, news feeds and opinion sites for any edge he can get. Do not bet the ranch on any of his comments but they are usually interesting and definitely food for thought.

From The Underground Trader:

    UNDERGROUND TRADER BASEBALL, BEES, BEACH, BARBECUE AND BOLLINGER BANDS. Yesterday's Labor Day holiday weekend concluding day was chock full of fun traditional activities for our family and one not so traditional. Most folks hear "the market is closed on Monday" and do not give it a second thought. However, the Monday of long holiday weekends is often one of the best trading opportunities of the year for futures traders. Volume is usually very light on these shortened trading days, allowing for strong trends to develop with little counter-resistance. The U.S. futures will generally take their cue from Sunday's overnight Asian trading and Monday's live European markets, which is exactly what happened yesterday. The S&P futures made a nice move to recent new highs at 1107.25 and the NASD futures were particularly strong. Had we not received a couple of pieces of disappointing European news this morning, there is little doubt the S&P futures would have made a run for the open of the year at 1113.75 (although others will argue the market was overbought after the mighty run-up last week and cite the inevitable unpredictability from "the return of trading desks" post-Summer). Aside from a nasty yellow jacket sting, I am happy to report a thoroughly enjoyable day made even better by some nice green trading. Hope you had a good Labor Day weekend and best of luck trading this week in a very tricky environment.

  S&P 500 - Last 5 Years
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      S&P 500 - Intraday
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      S&P 500 - Last 12 Months
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    Disclosure - Mr. Moenning owns positions in securities mentioned: none

    Note: Observations by the Underground Trader should not be construed as trade recommendations, but rather are reports on marketplace activity and his view on the subject.

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