How many of you tried to sell the market today at the open ? I am sure that was behind a lot of traders' mind this morning.
- The market seemed to be overbought.
- Inventory was long.
- Yesterday's profile structure wasn't strong at all.
- Yesterday we broke a 3 day balance. Breaking a balance means very often the start of a new auction.
- Market opened on a big gap right at the high of the overnight market. Usually big gaps are not easily filled on the first day as we can have margin calls on those caught on the wrong side of the gap.
- Finally the market never tried to fill the gap from the open and started building value higher and above overnight high.