Nasdaq futures are a touch lower overnight in a quiet session of trade. The overnight profile shows a slight selling wick above after a wave of selling came through around 3:30am. Today is a busy day on the economic calendar and we are currently priced to open inside range and outside of value presenting only a slightly elevated risk environment.
The intermediate term auction is still in balance and buyers responded to the late afternoon selling yesterday. As frustrated as I was at yesterday’s close with many of my swing positions, conditions favor the longs. If buyers can hold yesterday’s lows we may be looking at a buy-the-dip opportunity. Below you can see what I am referring to:
When I zoom in on the short term auction you can see the downside risk. There is a very thin profile structure below current prices and we could easily slash through these levels. On the contrary, the profile print yesterday has the potential to show a bias to the buyers. Value never migrated lower, instead hanging on right at Tuesday’s LVN at 3606.75. Value also overlapped Tuesday action which suggests we were coming into balance. The late afternoon selling may have been a shakeout because a responsive buyer came in. The key to validating the responsive buying tail is two TPO prints which hold the line. Otherwise, we can slide right down into Monday’s lows and potentially fill the weekly gap we printed Monday morning. See below:
Scenario 1: tests lower, takes out low of session, drives down
Scenario 2: tests lower, holds low of session, strong responsive buy sets up rotation back up to fill overnight gap 3596.25, through yesterday VAL 3597.75, and potentially test VPOC 3606.50
Scenario 3: tests higher, fills overnight gap 3596.25, find responsive sellers rejecting out of yesterday’s value 3599-3597.50 begins rotating lower
that glimmer of hope has been boot stomped into the mud, Lincoln style
so you are telling me I should go long…
If my struggles are any indication, then yes, sure
Getting closer..
until then just sitting and watching this daily ‘Grind’. It, by all means, matches the mood of our weather(rainforest growing in my backyard..minus the tropical temps)
Thanks for all your hard work, Sir Raul.
It’s really tough to blog (multiple times a day) in these current conditions.
Patience…always.
Have a mighty fine day all you Beautiful People.
*some of my faves have come down to levels not seen in years. I’ve added back share and/or to existing core positions with a few.
*mostly just ‘Piddly’ specs at this moment..
The Sounds of Silence
excellent ..
http://youtu.be/4fWyzwo1xg0
coming off the lows Sooz, and I think the sun is peaking out
😉
Since I am unable to respond via Mr. Cain Thaler’s blog(?)
yeah..
I say WHOAaa!!
http://ibankcoin.com/mr_cain_thaler/2014/05/15/greece-just-retroactively-taxed-greek-bond-gains-for-entities-33/