10-27-10: Multiple Divergences as the ES prints new lows....

A text book lead-in, non-confirming low print by the ES that resulted in a mammoth short squeeze today.

8-14-10: Thursday -- Unhealthy

Financials leading the market down today and still the market bounces back to near range highs...

In one word: Unhealthy.

A 3 to 5% one day correction is winding up. But who knows when.

Do you feel lucky?

I officially now have the opinion this market has entered into "the unhealthy zone". Once the pullback starts it's going to be of the vicious variety.

The programs will most likely keep the uptrend going, but as is always the case, it will not end pretty.

Advance-decline moving average divergences also point to the correction that's on it's way.

10-5-10: Tuesday - True Trend day

One of the best true trend days that we've seen in quite awhile!

I've posted a chart of the 50,000 volume footprint chart. This chart highlights the amazing high volume one time framing action printed today.

It's one of those unusual structural charts that does not print very often!

Trend Day Metrics in Play:

Volume above 45 day average -- Check

TICK distribution firmly positive with only 1 sub -600 reading all day long -- Check

A/D solid base near +2000 -- Check.

In sync indexes and sectors -- Check

Relentless strength at previous Resistance 1,150 -- Check.

I'm sure that I left a "check" or two out but what a picture perfect trend day to trade.

9-20-10: Trade of the Day

Trade of the day was to take the tight balance trade at the 11:00+AM (PST) trade.
That is if you missed the A period break from balance!

Of note:

1) Morning move up was on above 45 day average volume, Multiple 10K plus positive delta readings. Clearly institutional buyers are in the market.

2) Extended balance formed at daily breakout zone of previous chart resistance.

3) Morning's only pullback did not touch VWAP.

4) Morning pullback printed no VB negative delta readings below 6k.

5) Morning pullback printed no readings below -600.

6) Strong, trending solid green UP volume and A/D readings above +1,500

7) Cumulative TICK solidly green.

The TICK was probably the biggest tell, with only one print below -600 all day!

All of the above factors are supporting factors to the tight balance pattern in which the breakout occurred.

9-10-10: Friday -- Grinding Upwards

One thing that jumped out at me, and I've not heard anyone else make mention of it, but this market is trending just like circa February to April. None of the up swings since the top and post flash crash have "felt" like this.

Of crucial note, Friday churned up right at the daily 200 day moving average. Given the daily head and shoulders pattern and the persistent nature of this swing move, I'm going to call out here that I think the odds move it to the upside from here. Not to new highs, mind you, but still further up.

9-2-10: Thursday -- A Trade of the Day!