6-30-10: Wednesday -- Fresh Lows

It's never easy to still be awake when a almost full day of balancing action breaks out in a flurry.

However, there are a couple of tendencies that many times are present before the afternoon liquidating break -- possibly alearting the astute trader to keep his eyes open!

1) The day is unable to trade at or above the overnight highs. (And the overnight highs are below yesterday's range highs.)

2) A series of lower highs print below the HOD.

3) A base on or just below the VWAP before the final breakdown.

Today's low volume probe above the A period highs, fell short of the overnight highs by 3 ticks. Then lower highs ensued, followed by a multi-hour base that oscillated around the VWAP.

6-29-10: Tuesday -- VWAP Reversals Trades of the Day.

Today's huge 16 point gap probably put a little bit of a damper on the downward volitlity today, although the market was re-priced effectivly during the session.

6-25-10: Friday -- Mixed Snapper Action

Once the market broke out above the VWAP on TICK breakout highs, it was off to the races as some shorts covered. But, the mixed nature of many stocks in the basket were a big clue that not all was well and some afternoon selling brought the ES back to the VWAP. The bulls can hang onto the fact that the VWAP held and the bears can point to that today's rally didn't even come close to testing yesterday's range highs.

6-24-10: Thursday -- Downtrend Continues: On Snapper Watch.

Today was a excellent trading day should the astute trader identifiy early going that reference areas of both TIME and PRICE were in play.

Most notiably today I've highlighted that classic reversal times and S2 were in play.

Despite the downtrend, today like yesterday, felt a bit tired on the downside. Dull downside action is always suspect.

6-23-10: Snoozer Fed Day

So much hype about Fed days and now they are snoozer-events! Not great news for the arms dealers, such has Rob Hanna, selling $35 dollar guides to Fed day books. http://quantifiableedges.com/fedguide

I'm sure that it's a great book but count me out for now.

Afternoon Liquidation From Balance: The Metrics

Linda Raschke always says to play for reversal trades in the morning and to watch out for trend moves in the afternoon.

Boy, there are so many instances lately where she's sure been dead-on with this rule-of-thumb!

IF the market was going to liquidate down in the afternoon out of balance, today's structure sure printed some clues:

1) Morning range highs print below overnight range highs.
2) 1st major impluse up towards range highs, with strong TICK, falls short and prints a lower high.
3) Price breaks through VWAP to the downside and prints a double top pattern at VWAP.
4) From there the 11:00 (PT) sell programs kick in and the breakout from balance in confirmed with breakout in momentum (new low TICK and delta readings) along with above 45 day average volume.

Price Structure Ruled Today

It's really hard to fathom a trend day down off of a +15 point gap up, but at least the day structure did not discount the possiblity of such an event.