iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,591 Blog Posts

Gap Hunter

Nasdaq futures are up a touch as we head into cash open. The index spent most of the evening trading up following yesterday’s strong reactive buying. Range overnight managed to press 2nd sigma while volume stayed compressed into its normal range.

On the economic calendar we saw Advance Retail Sales at 8:30am which solicited a choppy but ultimately sideway reaction. We also have Business Inventories at 10am and Crude/Distillate Inventories at 10:30am.

Going back to the charts, yesterday we opened pro gap down and drove lower from the opening bell. The range was enough to expand volatility for a third week. It also managed to fill last Thursday’s pre NFP gap. The auction ultimately stalled out and found responsive buyers. We then worked higher to close the overnight gap up to 4431. A few attempts were made to reenter Monday’s range but ultimately we traded lower into the bell as the market was tasked with absorbing a heavy amount of supply in the final hour and a half of trade.

Heading into today, we are priced to open on the high-end of yesterday’s range. My primary expectation is for seller to push into the overnight inventory and trade down to 4420.50 to close the overnight gap. This market has demonstrated a strong proclivity to close gaps lately so it might as well continue doing so. From there sellers may continue pushing to 4416 where I will look for signs of buyers and then two way trade ensues.

Hypo 2 buyers push off the open to take out overnight high 4447.75 to target 4455.50 where sellers come in and two way trade ensues.

Hypo 3 buyers take out 4455.50-4457.75 and continue higher to target the open gap up at 4476.25.

Hypo 4 breakdown below 4416.25-4412 opening us up to trade down to 4395.50.

Levels:

NQ_MarketProfile_05132015

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12 comments

  1. linmoo

    Strongly recommend the ‘gap close’ trade when confirmed by breadth.

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    • Raul3

      Right on linmoo, breadth has been pretty boolish this morn so you think we go get that 4476.25 gap?

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    • Raul3

      Or do we close the overnight gap down to 4420.50 first?

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      • linmoo

        Little late, but close the gap down first. Most gap ups have been met with extended buy strikes in the following day or two. Today seems like another.

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  2. Sooz

    Just thought I’d pop on first to say ‘Hi’ to you, Sir Raul. Sure hope all is well with you. Secondly I’d like to address Mr. Partridge and His ASSININE comments via ST (yup, I’m still very entertained by that BS).
    A bit of a subliminal message here but he ‘WILL’ understand it. If you scooped Disco DUCK under a BUCK(just yesterday) you’d be up over +27% in less than 24 hrs.
    Love all your jabs..BWAHahahahhahah

    https://youtu.be/h_D3VFfhvs4

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    • Sooz

      I give up sharing ideas and Effin’ Amazing trades because of AH’s like ‘YOU’, Mr. P..
      Just saying..
      😉

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      • Raul3

        That Mr. P sure did wrong by you. Glad to see you stop by, but I don’t think he reads my blog Sooz.

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        • Sooz

          Just an ole’ Pickr ‘PAL’, Sir Raul.
          AHahah..hahah..hahahh
          He’s just a Big Blow Hard from way back when (over a decade now).
          Believe me, Sir Raul, he follows here and takes many ideas from these pages of iBC. You have to believe me on this.
          It’s very easy to cross reference.
          😉

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  3. matt_bear

    we’re changing the world. you either commit, or you don’t.

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