Yesterday afternoon, once we had our news of taper, we saw a clear entry of the long-timeframe trader. It started with an aggressive buyer reaction to prices perceived as deep discount—a long tail printed off the lows. Next we saw two-timeframe action where the intermediate term was wrangling for control with the long timeframe. This action can be seen just below our balance zone’s value area low. Once we reentered the balance zone, long time frame captured control of the market and pressed us through the value area and up to our hinge of supply near the annual highs.
My expectation today is to see back-and-fill balancing taking place between the shelf of historic price action at the highs and the layers of support built below. I have highlighted these reference points on the following NASDAQ market profile chart:
While the market is balancing out, look for individual pockets of momentum to run as people chase performance in this last full week of trade. Check out the Option Addict blog and comment section where top traders are sharing the names they will be watching for momentum.
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his leadership and the group’s performance this month is leading to the literal purchase of houses, cars, and prepaid college tuitions off of trades. If I wasn’t a part of it already I simply wouldn’t believe.
excellent work and camaraderie going on over there, very nice