Nasdaq futures traded mostly flat and balanced overnight until some early morning selling pushed us a touch lower. As a result, the overnight profile shows two distinct volume distributions. We have Flash PMI data at 9:45 and New Home Sales at 10:00 as well as some major Dow components reporting earnings before the bell. Perhaps the most sensitive announcements pertaining to the Nasdaq come out after market close today, including earnings from Apple and Facebook.
What I attempt to do with a long term chart is speed read the context of the market long term and use the information for broad strokes of risk analysis. Essentially, my vision is for the long term auction to come into balanced, bracketed trade. This is something that has not really happened since mid 2012. We are roughly above the middle or mean of this bracket, which makes risk of holding longs greater. This still is occurring inside a very long term uptrend so I give the upside a slight benefit of the doubt:
On the intermediate term, my goal is to determine who is in control and when we may see a new intermediate term change. Right now the buyers are in control of the intermediate term. They are pressing prices higher since tax day. We have come close to exceeding the prior swing high and the possibility exists that buyers can remain in control, further driving prices higher. However, I took the stance yesterday that we may be nearing another inflection point and I made a few adjustments to my portfolio. Yet buyers remain in control of the intermediate term swing, see below:
We use the short term auctions to gauge the continuation of the auction, always looking for signs of aging like overlapping value or opposing wicks (responsive selling) or sloppy distributions of volume within the profiles. Yesterday exhibited strong buyer control but also displayed a few interesting signs. We formed a P-shaped profile which suggests a short squeeze erupted early on but new, initiative buyers were not strong enough to continue pressing the value higher. In context, their passiveness in the afternoon makes sense; we made a ton of progress via a gap higher and a strong morning drive. Buying at this point became difficult. Yet, we did see some buyers dipping their toes in as another rotation did develop late in the day. Overall, buyers still in control also by closing out the day near the highs. This auction is likely to continue higher in the short term, especially if yesterday’s value area low holds as support. Otherwise, the gap fill trade may kick in. See below:
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update on ARO trade
sold over half this am here:
Status Filled at $4.90
Symbol ARO
Description AEROPOSTALE
Action Sell
Trade Type Cash
Market Session Standard
Order Date 04/23/2014, 10:33:45 AM ET
continue to hold a few thousand share scooped here:
04/15/2014 YOU BOUGHT
ARO AEROPOSTALE
Cash Shares: +* Price: $4.325
Did any of you pick up share of Eddie L..on the dip at 31 and change?
(one of my faves to trade)
loved your use of the honey badger pic.
the double double lol, thanks
Loving your tunes by the way.Ffinally soldmy $OESX position for a 50% gain.
I was influenced by your comment that
LED prices are falling.and in an uncertain market felt it best to lock in gains.
cheers
here’s one for all you gentlemen
Youtube upload from MrMarlboro..oh but of course..
😉 ))
Vintage Auto and T&A(Dream Cruise…haha)
along with a pretty good old tune here:
http://youtu.be/51ktWQVSs4c
also added to TBT here:
big whopper of a lot..yup!
patience alright..
Filled at $64.8199
actually just a few 100..
(who gives a sh!t..really?)
Just dead $$ ..
😉
Mr P can kiss my Sweet A$$..
how can you be 100% cashola and Bear to Bull back to Bear in 60 sec..
amazing
(shaking my head here)
much like Don Juan…
thread(s) yesterday were more than sad!
that’s a nice vid, sooz
Nice, I am still with it, but the daily chart looks ready to break and the weekly just looks sloppy/choppy
Great tune Sooz.I would to drive each
combo at least once.
of course you would, Gorby..
😉
the ((BIG)) question of the day..
which cc should I listen in on..live and in person?
I’m going with Apple..
It’s their turn, babee
*long both
Excellent call with much enthusiasm at Apple’s headquarters, yes?
It will be interesting to see what share price does within the next 5wks.