After a flash of buying to shake up the overnight inventory, sellers came in and rejected buyers. Now we are potentially heading into the liquidation scenario (primary hypo). Top short trade idea, BIS.
Or, we just take out overnight low then all speed vanishes and we settle into balance. But be aware that the structure below could facilitate a fast move.
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Once again, great analysis!
You knew it was coming…
that surge higher almost entirely eliminated the liquidation I was looking for, balance, Friday, liquid lunch
I’m like 90% sure the liquidation trade is not going to happen today, maybe next week. The power behind this up rotation was much more robust than we saw on the downside.
Both sides throwing hay makers through, fun times.
I increased my long positions this morning. I put in a couple of limit orders well below opening price levels and they both executed near (as of now) the lows of the day. Both positions are currently in the green. In fact, my entire portfolio (including XBI) just went green. But I’m not a daytrader so this means little to me – my portfolio could end up in the red today.
Interesting to read how you viewed the early morning price action – it seemed to be quite a bit different than mine. I saw it as an opportunity to put some idle cash to work (I don’t use margin; I’ve seen too many margin traders blow up over the years). If I’m reading you correctly, you thought it was signaling the start of a large market decline. You could still be correct and me wrong in short term, but I view investing as a very, very long marathon.
I only started reading your posts recently but find them a good read. It’s always good to read what those that hold positions opposite of mine are thinking.
Nicely done flyjetzzz!! I did the same on the drop. 99% of the time the initial move after a big news report such as jobs is the WRONG move…designed to trap. Bought a pretty large position in LABU ($50k)
I saw conditions for a flush down to 4656 on the /NQ, it was my primary hypo. We did not quite get there. I just take it 1 day at a time, like an alcoholic.
C’mon my man. Everyone was expecting a big drop. The trade this morning was a fat pitch (extra OA). Raised stops on LABU from this morning’s purchase.
I’d hate to be holding BIS today…WICKED BEARISH REVERSAL TRAPPING A WHOLE LOT OF PEOPLE LIKE YOU. Don’t fight the LEADER in this bull market. You’ll get your hands blown off.
I bought LABU this morning on the drop. Was a gift.
I kicked the shit out of guys 3x your size last month at a Korn concert
I have been a KORN fan for 15 years and have been to many a concert. I know the type it takes to kick the shit out of people in the mosh for I am one of them. You are def. not one of us. You would get your head handed to you like you are getting in that silly BIS trade.
I’m that pretty mother fucker who repelled kicks to the lower back without a flinch, all while stealing your purple-haired girl.
LOL!! 🙂
Raul- Can you change your headline?
“Morning sellers Dikembe Mutombo’d” LMAO
It will change when I can coagulate 300 words into a succinct message
I think it’s safe for you to change that headline now my man. Shorts were torched but good. BIS = silly trade