Over the weekend I worked through another range study of the Nasdaq market which focused on up day daily range verses down day daily range. It took me a while to sift through the raw data I piped in from the IQFeed servers, and I was feeling rather buggy yesterday after spending much of the weekend pouring concrete, however the numbers don’t lie.
When the motivated sell move swept through the marketplace at 10:30am, those motivated sellers started me on the process of defining low of the day. It just so happens that the first standard deviation of range to the downside since the beginning of 2012 (yes, ranges have stretched a bit recently) is 42.25 points. Take the HOD-4040.50, subtract off 42.5 and voila, stalk LOD at 3998. I knew this by about 11am, what were you doing at 11 am?
How’d that work out? So far so good, I was able to buy some YELP and AMZN along with playing the move in the futures.
The bummer? Today is a down/flat day after gapping higher into the week. Also, these stocks I bot are not doing anything and no action is LOSING when you buy duration paper.
The vision? That today printed a higher-low job on the intermediate term and marks the trough low for the next 1-2 days.
When am I wrong? A definitive break of LOD.
Until then, we dance.
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Raul – I’m in. Fuck it, let’s dance… https://www.youtube.com/watch?v=ukmv4m8k0XE
lol
Do futures count?
lol