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<p>[QUOTE=&quot;tradingadvantagetm, post: 1995949, member: 72270&quot;]<img src="http://hosting.fyleio.com/17735/public/10min_monday.png" class="bbCodeImage wysiwygImage" alt="" unselectable="on" /></p><p><br /></p><p>Monday was another Ramp &amp; Camp day: it ramped higher on very low volume and set up a camp site.&nbsp; The volatility was ridiculously low – again.&nbsp; For the vast majority of the session, the ES traded in a scant 3.50 point range despite being up over 35.00 points.&nbsp; All of it happened on Globex.</p><p><br /></p><p>Above is a 10-min chart of the putrid action.</p><p><br /></p><p>What caused the massive gap open that eventually stayed still throughout the entire day?&nbsp; More hopium – of course.&nbsp; Late Sunday evening there were reports that Germany would join five other AAA-rated countries to issue common bonds to fund more profligate spending.&nbsp; Odd thing is – Germany DENIED this rumor quickly.&nbsp; Another rumor Sunday evening was that the IMF had a EUR 600bln loan for Italy ready to go, if things got worse in that country.&nbsp; Odd thing is – the IMF DENIED this rather quickly as well.</p><p><br /></p><p>No matter – hopium is hopium is hopium…and who needs anything else, especially when the market is technically oversold and ready to bounce.&nbsp; Funny how these BS rumors always hit the tape when a short-covering pop is immanent (read: it’s a fix).&nbsp;&nbsp; </p><p><br /></p><p>What was ignored in favor of the <b><u><i>known FALSE</i></u></b> aforementioned rumors?&nbsp; </p><ul> <li> Moody’s believes “<i>The probability of multiple defaults (in addition to Greece&#039;s private sector involvement programme) by euro area countries is <u>no longer negligible</u>.</i>”</li> </ul><p> <ul> <li>The morning housing data showed that the average new home price drops to the lowest level since 2003.</li> </ul><p> <ul> <li> A judge tells ****ibank &amp; the SEC that their prepackaged “deal” over fraudulent CDO/MBS sales is bogus and will go to trial. There is a good chance the next judgment will be close to $500million. Will actual justice spread?</li> </ul><p> <ul> <li> Italy was downgraded by Egan Jones ratings agency.</li> </ul><p> <ul> <li>After the close, Fitch moved the USA’s rating outlook to “negative.”</li> </ul><p> <ul> <li>After the close, reports surfaced that S&amp;P may move France’s rating outlook to “negative” within 10 days.</li> </ul><p></p><p>Despite all of this, Hopium prevails. Everything before the open and after the close has been ignored in favor of rumors that were already (read: immediately) denied.&nbsp; </p><p><br /></p><p>Isn’t a government controlled market just awesome?</p><p><br /></p><p><b> Trade well and follow the trend, not the so-called “experts.”</b></p><p><br /></p><p><b><i>Larry Levin</i></b></p><p>President &amp; Founder- <a href="http://www.tradingadvantage.com" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.tradingadvantage.com" rel="nofollow">Trading Advantage</a>[/QUOTE]</p><p><br /></p>

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