Thursday, January 23, 2014

Down Bar And Short In The Hole

Chomp, chomp, chomp.  Um, the taste of hat.  Thank you all for wishing me happy eating today.  Appreciate it!



Thanks China.  Apparently, it's not good 'ol China isn't firing on all of it's polluted cylinders, thus the futures got whacked before the bell, negating even a test of the Scooby Snacks above. Or maybe after last years stellar advancement (make that  5 years of steady advancement) the old girl is just tired.

The China populace must not able to function all that well after smoking a pack and a half of ultra-high tar cigarettes and living in a place where you can't see the sun 350 days per year. It just can't be a cheery place work hard in.

The near perfect pattern-failure scenario unfolded and down to the bottom of the range price explored before traders got short in the hole.

The 1st hour and a half of the session was very interesting and a couple of metrics we follow indicated that this day was ripe for possible short in the hole.

1) Most notable, our beloved TICK indicator could not even muster a -600 reading as price ground slowly lower for the 1st 2.5 hours.

2) Time was a factor too, as price did way too much balancing during it's morning descent.  

3) For a gap down of of almost 10 points to only have balanced sediment readings at -1000, (with no trend lower) was a flag too.  Both sediment and the TICK were indicative of a some strong buying pressure underneath the hood in the NYSE.

Trade of the day was the 11:00 reversal a tick or two above S4.  Mostly due to yesterday's very tight range, this is the 1st test of S4 that I recall in years.  For this level to get taken out with spotty morning structure, was something to bet against.

And it's no coincidence that 11:00 printed yet another reversal move.




Lots of great stuff on the 5 minute.  



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