Zerohedge call for doom causes markets to rally 18 more handles.

Last night there was news of an IMF bailout that was quickly rebuffed. Futures gapped up on 25 handles. After the denial hit the wires, your friend and mine, Zerohedge comes out with IMF Package Denial Sends ES And EURUSD Tumbling. Market did not take out opening print and then rallied 20 more handles.

In the current market environment, news does not play out like it should and largely believe they use news to get things done anyways. The market reacting in this way tells me a couple things. Either there were a bunch of stops above 1180 or there is significant bullish news coming out later in the week, that can only be interpreted one way. Maybe jobs number is blow out, but it appears someone knows something.

Moral of the story, this market is different and perfect information is rare to come by. Have a reason for a trade.

We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121, email info @ traderhabits (dot) com or twitter, stocktwits, youtube and facebook. Subscribe to Traderhabits by email or to newsletter.

The services and materials provided should not to be interpreted as investment advice, an endorsement of any security, commodity, future, or personal investment advice, or an offer to buy, sell, hold or trade futures, options or commodity interests or a recommendation to buy, sell, hold or trade futures, options or commodity interests. You assume the entire cost and risk of investing and are solely responsible for any and all gains and losses, financial, emotional, or otherwise, experienced, suffered, or incurred by you.

Read previous post:
Basics of S&P 500 limit up and limit down.

Brief History Limits were created in 1988 and percentage move limits have been used since 1998. How they are calculated....