NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume. Over 100k contracts traded as price worked deep down into last Friday’s trend up. At 8:30am initial/continuing jobless claims data came out mixed.
Also on the economic docket we have ISM manufacturing at 10am.
Yesterday we printed a neutral extreme down. A violent morning auction eventually gave way to sellers who briefly poked below the Tuesday low. Then a strong bid came in and worked up through IB high. Then we traversed the entire range again, eventually closing on the lows.
Neutral extreme.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6881. From here we continue lower, down through overnight low 6823, setting up a move down to 6791.25 before two way trade ensues.
Hypo 2 buyers press up through overnight high 6898.75 and tag 6906.75 before two way trade ensues.
Hypo 3 stronger sellers close the gap down at 6789.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
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Raul, regarding your high-risk 2018 long, posted in Exodus a few weeks back…
After review, including listening to prior calls, I find it very interesting. It seems like they may be on to something, and I will probably initiate a small position prior to the ER later this month. Plus, having missed your $SGMO call last year, how can I not?
Anyway, the reason for my comment: It seems painfully obvious to me that they will need to raise cash in the near term. I doubt LTD is a viable option for the company. In short, dilution incoming. I don’t see how this doesn’t happen.
The CEO seems straight-up. However, of course he will use any positive ER news to maximize the cash raise.
I think my play here will be to initiate long to capture the ER pump. And I will be hoping like hell that they drop a bombshell on the ER. Once the pump is max, I’m out, then will re-enter on the day they announce the secondary.
Are you in Exodus daily? I’m very interested if you’re willing to share what insight you have that may not be readily apparent, because although I’m planning to take a small position, I’m worried I’m not going big enough. But it’s hard to go bigger when all signs seem to indicate that this one is roadkill.
As always, we’ll see.