Wow, that was fast. We had a real quick move to the OH and as can be seen, the acceptance area above in fact didn’t pull price higher at all. Like I said pre-market, in these conditions the rotational activity is generally pretty cooperative at the edges as long as they aren’t too messy. We had strong buying into the second test of 78 (which is also the pivot for the day) coupled with good institutional selling at the same time. That initiative moved price lower and exiting longs either pushing the panic button or stopping out basically doubled the power of the move as always. This is a perfect companion to my post in the forum this morning. Don’t try to bet any level blind. Have an idea which will add to your edge and know the levels where the fights will be and be accurate about those of course, but make the trade about identifying what IS happening right now at the level and trade only if you can see that a large number of traders made a mistake that will cause a reaction that will help your trade. We are done for the day but for those hanging around, happy hunting and as always be careful…
2 Responses to “6/2/2010 Post Trading Analysis”
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Great catch guys and the post was great in response to TY. Would the 71 not reperesent net institutional long of 71 Delta
No that delta is on the trade bar. The trade setup is off the previous bar. Institutional selling into the high…