Here’s a detailed look at the buy signal we got this morning in the index futures. Or in other words, the process of identifying a tradeable market low (intraday).
Stocks sell off at the open…but take a look at the activity at the lows.
The criteria to buy a market heading lower like this is:
1. No extreme $TICK signals. The lowest reading into that meltdown was -500
2. A TF divergence against the NQ, ES, YM.
3. A breadth divergence. $TICK not following price to new relative lows.
That move resulted in a 16 point move in the Russell.
It’s been a fairly reliable signal even with all the added volatility.
OA
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I can’t seem to duplicate your charts. Your times start out before the market opens, whereas I’m starting out at 9:30. Can you explain some more.
The NQ and the TF are futures charts. Futures dont follow the cash market hours.
I don’t live on the east coast. Move those times ahead by two hours.
Thanks!
BABA calls have divereged some coin from my acct. Missed my sell monday
$RUT ripping through the speed zone again, could be another trade setting up there
any thoughts on holding $TNA calls into tomorrow? still trying to figure out how to read these tea leaves!
Do it. Hold. Fuck it. Buy more.
If you stare at the charts long enough, you will see what you want to see. Keep staring.
I got carried away. I apologize.
Sorry if this struck a nerve. Trying to focus on day trading set-ups for the time being.
This will have to do with your own risk tolerance – best criteria I learned here is figure out which scenario will make you most angry – letting a win turn into a loss or stopping a win from being a bigger win. Watching the tea leaves won’t answer that question.
I’d keep focused on day trading for the time being. Tomorrow is uncertain.
The divergence says it all…. hold your tna, Thomas Jefferson.
Also, the Russell is putting in lower lows on the 5 minute time frame.
Wait… it that too long?
I’m done.
Woah. Looks like I struck a cord. I would vow to keep my questions to myself in the future, regardless of how stupid they may seem, except that’s not my intention.
YY calls winning.
Anyone taking home anything? I am lost right now.
Going for a YOLO in $NFLX here
GTLS looks good man of gas
another brutal opex coming? ugh.
Wow. JDST anyone?? Got to that $10 level real fast
yolo’d ISIS 62.50s
you buy that murdered out tesla P85 yet, jeff?
I’m downgrading to a Yaris bro. Unless FSLR gets $100 this year.
LMFAO!!!!!!!!!!!!
Want to own P over the long weekend
In biotech still holding ADXS SGYP KPTI HALO ARWR CYTK QGEN RPTP SGEN. All with lots of delta and May to Aug exp.Most in the money still.Been rocky though.Still haven’t learned to religiously sell some 4 and 5 baggers. Also have CCK CHGG TRN GBX.
Chess for the win. I’ll be over at his site from now on. Can’t afford to listen to you any longer. The FINRA line earlier in the week was the kicker. I think you need a trip to the therapist again.
Thanks for all you taught me though. I really do mean that. I just hate that this blog has imploded so spectacularly from what it was in late 2013.
Mind the door on your way out
Are you that guy that wrote the juvenile Jerry Maguire letter when he quit Goldman? You are allowed to just go away quietly, you know. Best of luck out there; it is hard enough to have success without arbitrarily cutting out voices of potential insight.
This is like the 5th paid Chess advertisement around here, no? Desperate times…
You made money with Chess? 12631 with him always seemed like an 80% cash circle jerk that never made any money, i cancelled after 9 months.
you should know by the EOD who’s actually controlling this tape. If the bears are this move will get faded otherwise its business as usually.
i can’t believe i’m riding into battle with homebuilder leaps and YY calls.
i have to assume you had the same reaction as I did seeing $BZH sailing up in that fine $18 air.
indeed, sir. the party doesn’t start until we get thru $19 though. KBH is shaping up real nice as well. My target is $25 for that one.
OA, thoughts on $SUNE? I have a very large position from $21.91, would you lighten up or continue to ride this breakout from yesterday? thanks.
This is my largest holding. Been in it for a year. I’d add, if anything.
Looks like people are starting to pack up for the long weekend…
Taking the SPY puts . Why would the reaction to this employment report not be the same as last month’s report ?
You like GOGO here, Jeff?
Landing on top of channel and retest of the breakout? April 19.50’s for a move to 21? Or may 20’s for a move to 22-23?
Yeah, looked like accumulation on that last leg up. Great volume patterns.
$CMI was my favorite call acquisition i can remember, which explains the aimless drifting and decay towards zero. Now that i hate the position, hopefully it will lift off.