May 272010
 

Note much to say today. No trade for us and no setups worth trading. I didn’t expect quite that much grinding through the overnight balance area as it is so well established from the previous session and Tuesdays¬†overnight as well. I suppose it is actually a good thing as we may have now established some support there. Given the mixed bag of news and fragility I think that we didn’t test 78-79 in the first hour may turn out to be quite bullish for us. If we do test it later and it holds followed by a close above the VPOC I think we will certainly be testing the ever important 1100-1101 handle directly – if we don’t later today. As expected and I stated pre-market, 92 didn’t hold and instead 94-85 became the star. We got hard rejection there but it didn’t set up. I’m testing some execution platform stuff this morning so I didn’t even scalp. There were winning scalps everywhere this morning though – at 86.00, 84, 89.50 92, & 94-95. Sorry I missed them. For those hanging around I do think 95 is still viable but err on the high side and be careful. If it makes it back that far from 91 or so as I write this it may blow through and go right to 98-99. The safest move would be to wait for that, but again 95 still may hold. Watch the flow and feel it out as always. Happy hunting…

UPDATE:

I spoke too soon. A nice Biglot set up on continued weakness and thinng. Good volume too. It was a feel thing though as the retest only got back up the 94 which was 3 ticks off the high. In a perfect world I would want better but it did get higher than the previous bar that only got to 93.75 so that combined with the volatility and volume shift without any forward progress. The key was waiting for the institutions to roll over and stop buying which happend very quickly. Hopefully at least some of you were able to catch this one. Not exactly a laydown but solid nonetheless. If you were more ambitious than a 7 tick target you made a lot on this trade, there was ultimately almost 4 points of meat on the bone here (although not shown in the snap which I took right after the first bar change). Nice little trade. The little engine that could…

 Posted by at 11:24 am

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