Sunday, August 17, 2014

Mechanical Liquidation!

Today was a spectacular example of the market really having transparency (edge).

We were not blind to the fact that inventory was getting really long and that some sort of inventory re-balance could be in the cards.  And that's what happened today with a little bit of news coming out.

Volume and volatility spiked.  Looked scary.

But the sellers exhausted right on cue -- and that is never good for downside continuation.

We will highlight the structure of the selling on the 5 minute.

And clearly point why today  the selling was doomed.

Two perfect trades of the day featured today.



Now let's unpack the 5 minute movement a bit.  Today is worth the effort. 









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