Gap Up Day

Shorts got it in the teeth today.

Tight intraday range.  Buy the minor low and sell the minor high.  But honestly, I thought that they would extend the range higher today but they didn't.  I thought the overnight highs would get tested -- but they were not.  That's a flag to notice...

Slight tail on the daily.  We are pretty much smack dab in the middle of the range now.   A failure tomorrow should have some teeth in the move as newly laggard longs will have to bail.

For now my bias is higher.

 

Today was great structure.  As the day unfolded, I saw the future before it happened and that's always so cool when that happens.

Friday balance was the high odds bet.

Even with Vix well off of the 10 lows, it's still a challenging trading environment at 15.

Ok, so here is the 1st slide.  Descending triangles always a great pattern.  This one set up nice, but the key was to know that it was going to fail back up into the range.  Which it did.

Have to do a post!

Well, 2017 is practically half way done already and I've not done a post.  Sure, I'm starting a new business.  Sure volatility sucks.

But I have so wanted to start posting again.  I see all of these patterns and want to document them.  Not sure if I can get through the block to simply spend a little time to post regularly again.  Now that I'm firmly out of the habit for well over a year, not so sure it's going to happen.

Here is what yesterday's action was like: It was one of those days with little volume that just so happened to grind lower all day long on the heels of the gap up.  Nothing harrowing about the day whatsoever except for this is the kind of day that made me enter long on the gap fill -- which didn't pan out all that well.  I thought to myself on the close "I would not suprise me if the market gaps up tomorrow.

So with that in mind, here is what happened today.  Yes, the two way auction process lives!  All of the laggard shorts yesterday fueled the rally. 

With the market at yesterday's highs, do we sell it or not?  Given the short inventory in trouble, it's not a sell. 

At here is the top, as indicated by the TICK momentum.  Still, all it did from here was base into the close. 

This kind of stuff happens when  market is firmly in an uptrend and in a quasi-corrective and balancing-mode.  

Shitty selling gets hammered. 

On the daily: