All markets were pretty much sideways thru the overnight and into the morning stretch until roughly noon eastern time. The the IMF came out with some statement about something concerning Greece or Europe or both, same general snippets that have been regurgitated how many times since 2008?
When dead markets with nobody trading are met with any type of semi-relevant news, markets react sharply. It was all-day down in moderate range fashion as the algos rolled thru myriad air-pockets with nobody around to stand in the way.
It was great to see some semblence of normal intraday range and any kind of directional movement in stocks… first time that’s happened since FOMC Thursday two weeks ago. Now the only question traders have right now is this: was that a one-day wonder? Will these markets go right back to the recent comatose non-range sessions behavior again? Or is this actually the start of a return to normalcy and reality in stock markets?
Nobody knows, and everybody will find out in due time, together.
Grain futures weren’t greatly impacted by the news across Atlantic, posting a very modest session’s range thru rather staccato action downward. The easy money was offered before pit session trading began, which is often the case with electronic grains. Much like crude oil and currency futures, the actual pit session is less and less relevant all the time.
How the day went for everybody: money to be made earlier in soybeans and corn, later in stocks and crude oil. Just another typical day in the year 2012. What is due to unfold straight ahead remains to be seen, and is known by no one for now.
For more daily updates from Austin, visit his blog at Coiled Markets.