PitBull's Rule Tested as Late-Day Sell Program Rattles Markets

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After gapping sharply higher and rallying up to 5496.50, the ES and NQ did what they do best — they dumped. At 10:50 AM, the ES traded down to 5391.00 at 12:12 AM.

Before I move forward, I want to say: if you’re disturbed about what’s going on in our world, you have every right to be. Watching the bond market dump, gold jump to 3,263.00, and the dollar falter — it's a lot. If you haven’t noticed, the dollar has fallen about 5.9% so far this year and is on track for its biggest annual loss since 2017.

I think it’s something we can’t do anything about, but it will get better over time. I’ve learned to prioritize what really matters in my life instead of sitting around thinking about ‘how gloomy it is.’ I think life is what you make of it. Sometimes you can fix it or do something about it, but the winds of change are moving faster than we’ve ever seen.

As I mentioned in yesterday’s OP ‘lean,’ there’s a study that says based on this year’s volatility, the S&P 500 is predicted to move an average of 2% a day for the rest of the year. Sounds crazy? Yes — but you should be used to this by now!

Late in the day, the ES traded up to 5479 and then fell 70 points down to 5405. I was trying to go with the PitBull’s rule — that the ES tends to close in the direction it started out — and it looked that way, but out of nowhere, the ES and NQ got hit by a late-day sell program.

My lean was to sell a big gap-up and buy weakness, and I did both. But I didn’t really understand the late drops — that's just how it is sometimes.