Janet Yellen is on FIRE

Janet Yellen is an awesome grandma-like figure. She possesses the ability to answer seemingly “yes or no” questions with 20 minute tales, just like any grandma recanting her trip to the grocery store. It crushes the q&a session where Senators each only have a few minutes. I wish someone would run a statistic on what % of each Senators time she was occupying with a monologue.  You know you can’t wiggle your way out of the grocery store conversation once you’ve made eye contact.

More on the topic of statistics–let’s discuss an interesting one. 93.44% of the time the initial balance, or the range of the first hour, breaks. That’s in either direction.  Of those breaks 62.97% are IB high [these are somewhat dated numbers]. Therefore, if through context and/or market structure you hypothesize the session low to be sound you have a statistical target to shoot for. Wrap some risk onto a long and work that stat.

The Nasdaq has taken IB high with relative ease six sessions in a row. It suggests an active intermediate term time frame is participating in the tape. And that makes sense, given the proximity to a multi-month-two-way market. The duration of the coil may contribute to the magnitude of the thrust.

My risk aversion side kicked in and I stopped out of TSLA this morning. I low-ticked it after it went gap down below my risk and then wedged lower. Literally 5 minutes after stopping out, I saw the lovely falling wedge picture. Even if I would have stopped out later in the session it made sense to hold through this point. I wavered decision-wise. Here’s the picture:

Learn this look into the automatic computer bank of your memories. Keep your eyes peeled for one while listening to sweet tales of Better Years by Aunty Yellen.

http://youtu.be/MEQMkzjcLEA?list=PLj5YGBYOnfpVDaBeKR98020_EFupUj9sI