iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
4,011 Blog Posts

Day Trader Environment

The NASDAQ futures are higher overnight, drifting quietly through the globex session after buyers put together a decent bounce yesterday afternoon.  As the USA comes online, prices are currently trading just above the afternoon swing high.

The long term auction taking place in the NASDAQ composite has become an interesting picture.  On one hand, the weekly chart is very much still in buyer control.  The series of higher highs and lows is still intact.  Yet the weekly chart offers us a bit of contex that we continue to watch develop. Three weeks back it printed an outside candle and this week has the potential to confirm it to the downside.  Of course, this is very early speculation since we have only seen one trading day, but something to keep in mind nonetheless.  The daily chart suggests buyers are still in control but with a more confident seller pressing down below recent support.  We have not seen a swing low support broken since late January.  In that instance the market quickly V-shape recovered, should one expect the same outcome again?

The intermediate term auction is seller controlled.  This can be seen as a series of lower highs and lower lows.  The sellers also pressed us out of the intermediate term balanced volume profile.  There now exists a large void in volume where the lower end of balance once existed.  It would not surprise me if price were to traverse this area several times the next time we come to it before the market ultimately decides which side of the cave it wants to trade on.  I have highlighted this volume cave and some other interesting observations on the following volume profile chart:

NQ_VolumeProfile_intermediateTerm_03252014

The short term auction is buyer controlled.  We saw responsive buying yesterday afternoon which resulted in some tail prints which demonstrate strong demand.  When the NASDAQ came into the bell while forming balance and that profile print has a long tail on it also.  There exists a stronger potential for an opening drive this morning for two reasons.  First, the market is currently trading only a few points below the volume cave highlighted above (intermediate term).  Second the market profile prints are single prints like a zipper, and prices tend to run right up these.  Thus, any aggressive attempts to fade early strength are at an elevated risk of a drive.  Otherwise,  we have a solid profile structure to trade against below us.  The play would be to short into any early overbought positions and target an overnight gap fill.  If price trades inside of the prior value for an hour, find another entry onto the short side to trade through value to the VPOC and then the VAL.  I have highlighted this trade as well as a few other observations on the following market profile chart:

 

NQ__MarketProfile_03252014

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7 comments

  1. Sooz

    Interdigital makes my heart feel warm and happy..from that $26.33 scoop.
    Ahhh Yes!
    Let Mr. P know, if you will, that I added to WPRT yesterday. Instead of a cost avg up I added at a slight cost avg down here:
    03/24/2014 YOU BOUGHT
    WPRT WESTPORT INNOVATIONS INC COM NPV ISIN #
    Price: $14.95
    also posted add over on Chess’ Blog
    ARO at $5.45 (YTD nice returns but am watching closely)
    added to JOEZ at $1.17
    and a few others not posted ,as well.
    Nearly cost avg up on those core TWTR at $38.888 when it 47 and change but did not add.

    The ‘Dog’ in my port is END..cost avg down but still in unrealized loses territory. started adding back too soon on that little wild one.
    Patience…

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    • Sooz

      Can you believe it is snowing, Sir Raul?
      For Crise~Sake it’s the longest winter I have ever endured.

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      • Raul3

        I love it because spring equals inordinate amounts of yard labor

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        • Sooz

          Cannot wait..love working in my yard with exception to fall leaf removal which equates to about 300 mulched garden bags full..(endless just like this winter)
          The Farmer’s say we are to have a cooler than norm summer(?) Anything above 60 sounds good to me..
          😉

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          • Sooz

            I’m sick of wearing my Sorels..The only footwear that has been on my feet for the past four months.
            -COLM-
            sold out of my position

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          • Sooz

            I seriously want to add thousands of shares to the “Biggest Piece of Garbage” in 2014..
            (not my quote)
            In spite of it all..BWAHahahhaah

            Have a great day all you Beautiful People..Be Safe

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          • Sooz

            Referring to Transocean there^

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