Tough tape right now. Almost all of my indicators are not working. With all this divergence in the iETFs versus the market we’re getting low probability plays. Actually, I haven’t seen a tape like this in a long time. Right now, the market either has no idea where it wants to go, or it just doesn’t want to go anywhere. Maybe it’s unemployed too?
If you missed the morning action, here’s a snapshot that shows little range and little playing field for day-traders. So far, the tape favors the bears, as there is divergence in FAZ, SKF, FAS… working inverse to the inverse. My guess is that FAZ and SKF are heavily shorted and are imbalanced against this low volume tape, therefore no significant rally then they start covering (keeping iETF stronger than its supposed to be).
Here’s a snapshot of FAS, FAZ, DJI, SPX at 12:45 ET
I’ll be waiting for the imbalance in the market to adjust.
Stocks that are currently day tradable are: DRYS, RTI, AVP. I am staying away from DRYS unless we get rally in the close (day-trader short covering).
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Volume very low on PALM today.
… probability increases outside the triangles.
Great charts gio – hey are u on any IMs during the day btw?
Yeah. not today though. I have a google talk with [email protected] account.
cools – I’ll check it out. Definitely tough tape today. Been scalping FAZ but thats about it
We’re going to catch a break after all this congestion.
Gio, would you short SMG on this doji or wait to see if the rally continues and fade it?
Thanks for the SRS recognition!
Wasn’t at my computer all day today, and I’m taking a bit of a respite trading wise this week… I like this iETF breakdown, it’s looking like we may get that weird low volume strength for possibly another day. Thanks for the RSI advice as well!
ZM
E8 … no. don’t short SMG.
Looks like a good BO on volume even after the Barron’s story but I have to agree with them that homeowner’s are likely to cut back on their lawn service to save $ and apply their own fertilizer when not looking for a job. I suppose an increase in DIY’ers using their 4-Step program could offset the reduction in service revs but this thing is pricey for a consumer discretionary stock. I’ll keep it on my watch list for future shorts when you give the vix signal.
Thanks Gio