Mar 262010

A little tricky this morning but it all worked out fine. Order flow reading accuracy was a must to find success this morning as well as a bit of volume analysis to discover some hidden truths driving the action. First off, the entire upside rally for the morning was NOT institutional trading. In fact, by noon the total volume since the open was still barely over 300k and the institutions were more than 20% favored to the short side signalling an eventual collapse at the critical OH level. We passed on the first push to it as the order flow was temporarily showing signs of breakout/trending. We did sell the second attempt as it set up nice with enough new buyers trapped in the weak upside. Short at 68.25, stop at 70.25 just on the other side of the central high volume balance area from yesterday. We were hoping to trade all the way back into the 65 handle but it stalled so long we were falling asleep. Hahaha. Anyway, we brought the stop in a bit after getting 3 ticks to the positive and eventually we hopped out with a solid point at 67.25.  I had a lunch meeting and missed some great stuff later. Two of the other trades from the pre-market sheet worked out perfectly as well. Sorry to have missed them. The 63.50 fade never set up and instead the 63 sh0rt into 60 did. It was actually a pullback with a fill at 62.50 or so for 2.5 points. Finally, the 58.25 fade was perfect as well, although it pushed lower before exhausting and the fill would have been 57.50 or so with a nice trade back into 60. Again, sorry to have missed it. I hate coming back from lunch and seeing that it happened to be the rare lunch day that was awesome. But as I said just before leaving in an email, the institutional short side trading was stacking up all morning and it couldn’t hold that OH range for long. Good stuff…

 Posted by at 2:42 pm

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