iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,847 Blog Posts

New month new rally, NASDAQ up a quick +100, here is Tuesday trading plan

NASDAQ futures are coming into the final month of 2020 up a quick +100 after an overnight session featuring elevated volume and extreme range. Price drove higher overnight, rallying steadily until about midnight. Then, about 50 points below record high sellers stepped in. Since then we have been in a tight flag along the highs and as we approach cash open, price is hovering up near the all-time high print.

On the economic calendar today we have lots to digest at 10am—ISM manufacturing, construction spending plus some talk out of Fed Chairman Powell. There is a 52-week T-bill auction at 11:30am.

Yesterday we printed a neutral extreme up. The day began about flat and after a choppy open two-way auction sellers stepped in and drove price lower, printing a sharp unidirectional sell-off down into last Wednesday’s range. Buyers stepped in near the lower quadrant of Wednesday’s range and began working price higher. Sellers defended the daily midpoint the first time around, but a second thrust pressed through it. The rest of the session was spent rallying, reversing the early selling and eventually pressing into a neutral print right at settlement. Closing on the high.

Neutral extreme up.

Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 12,401.75 and closing the open gap at 12,411.50 before two way trade ensues.

Hypo 2 stronger buyers take out all-time high 12,436. Look for sellers up at 12,448 and for two way trade to ensue.

Hypo 3 sellers work into the overnight inventory and close the gap down to 12,296.75 then continue lower, down through overnight low 12,292.25. Look for buyers down at 12,223.50 and for two way trade to ensue.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ cruises into month-end, here is Monday trading plan

NASDAQ futures are coming into the final trading session of November with a slight gap up after an overnight session featuring extreme range and volume. Price was choppy overnight, first taking out last week’s high, then steadily rotating lower until taking out Friday’s low before eventually working back to the middle of Friday’s range. As we approach cash open, price is hovering at Thursday’s midpoint.

On the economic calendar today we have Chicago PMI at 9:45am, pending home sales at 10am and 3- and 6-month T-bill auctions at 11:30am.

Last week featured sellers early Monday discover a strong responsive bid. The rest of the holiday week was spent rallying. The last week performance of each major index is shown below:

On Friday the NASDAQ printed a normal variation up. The day began with a gap up beyond the prior day’s range and after a brief two-way auction buyers ramped price higher. The auction continued higher for a bit more than an hour, going range extension up and trading into levels unseen since September 2nd before falling back to the mid. The truncated session wrapped up around 1:15pm with price just above the  mid.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 12,272.25. Then we press up through overnight high 12,337.25 before two way trade ensues.

Hypo 2 gap-and-go higher, working up to 12,400 before two way trade ensues.

Hypo 3 stronger sellers close overnight gap 12.272.25 then continue lower, down through overnight low 12,193.50. Look for buyers down at 12,178 and for two way trade to ensue.

Levels:

Volume profiles, gaps and measured moves:

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On death and speculation

Sitting here, on my velvet throne, I do my best to check my privilege.

My emotions were all over the place this morning. Been thinking about death all week. Not in a fatalistic sense. More as a way of putting a sway on the human psyche. We have a hard time letting go.

Renunciation, as the eastern mystics call it. There is a sect of Buddhism who specialize in mastering death. It’s a three step process. First you renunciate all worldly desires and attachments. All of them. Easier said than done. The female nipples, for example, exact a strong pull on salacious lads like yours truly. Boddichita is next. I feel like an ass even presenting these concepts in this setting—a blog whose sole directive is extracting fiat american dollars from the global equity complex—but let us continue . Boddichita is compassion for all living beings. Even murderers. Even viruses. Even your parents. Even total strangers you pass by once and never see again. This step is important because these mystics gain much strength from their training and if that energy is not channeled into working towards the common good, it can destroy the practitioner. Finally, non-duality. This is the dying part. There is an elaborate psychotechnology where the meditator works through all the phases of death, visualizing dying in the proverbial third eye of the mind, until the sense of me, of existence, is no more than an orb of light that is totally interconnected with everything.

Okay that was my crash course in hatha, trantra, rassayana.

Moving on.

Death. To meditate on it can seem depressing but it doesn’t have to be. It can put an urgency in your day. What would we do differently if we knew we only had a few days to live? Some people think they’d seek out some orgy but that is not the point of the exercise. The stoics liken it more to a soldier readying for deployment. Knowing they may never return. The point of taking the mind so close to death, as far as I can tell, it to de clutter the mind and find some clarity around your thoughts.

I’ve been taking a deep dive into the culture and politics that seemed to gel around San Fransisco in the mid ’60s. Reading fiction and non-fiction, watching the films, listening to the music, following the campaign trails, doing my best to understand what the magic was. How we seemed to set a high water mark for american living in that moment, and how it somehow gave birth to the internet, Big Tech and all these other institutions we almost take for granted today.

You’d be a complete dope to ignore all the LSD that was floating around…but my mind keeps wondering how many novel corona viruses were floating around the city back then. I’d guess at least six.

I am not a fucking conspiracy theory person. That is a rabbit hole that sucks in the weak minded. The folks who already feel somehow cheated by their fellow man, beast or fate. It fits their framework for why they were dealt a lousy hand.

Again, I need to check my privilege if this is to be a useful entry…

I have lived an extremely fortunate life. Born to an Italian immigrant who married a big tall American blonde, I popped out the womb in the summer, on my due date, at 6am. Born in the finest hospital in Detroit. In a private room with big windows overlooking the river. Treated to the finest Mediterranean diet, my foreign relatives insisted on bringing the family (the whole family) together every Sunday for dinners. Huge. We didn’t need church as an excuse to gather. It was a bunch of people in a foreign land doing their best to survive. At dinner I was exposed to the immigrant hustle. My street smarts grew exponentially thanks to wheeling and dealings of dear Uncle Raul, a fearless lad with swag that would make most rappers blush. Dearly compassionate Aunt Rauls taught me the traditions of southern Italy. If I didn’t kiss all my uncles and aunts Elder Raul would whip me with a poolstick.

Put big dinners aside. I was brought up in the finest private educational institutions money could buy. My friends come from the wealthiest families in the area.

Tight family. Good food. Solid education. Rich friends. Absurdly good looking.

I understand my perspective is from a position of privilege. Of course I don’t give much credit to conspiracy theories. Still, Bill Gates publishes his pandemic research in 2019 and all the sudden the whole world is taking a dry run at pandemic defense.

Fine. But fuck you if you cannot take information in an objective manner. You certainly won’t last long in the world of speculative finance. Maybe your skill set is more suited for accountancy or general labor. Heck, go be a lackey for some goddam republican, they live in a fantasy world so far from Occam’s Razor their heads bob like balloons on the ceiling.

Deaths. Viruses. Their existence before 2020. The greediness of man to think themselves immortal. Spending millions for a few more dicey hours of “life” inside an ICU. I get it. It is hard to let go. Of everything. Especially if your work isn’t done, but everything is going to be fine.

Markets, trees, societies, all here long before us. The same today. The same after we’re gone.

Rant. Over.

Raul Santos, November 29th 2020

And now, the 314th edition of Strategy Session. Enjoy.


Exodus Strategy Session: 11/30/20 – 12/04/20

I. Executive Summary

Raul’s bias score 3.43, medium bull. Strong Monday. A bit of continuation into Tuesday, then look for remarks from Fed Chairman Powell Tuesday morning to introduce some selling into the tape. Price is choppy through the rest of the week, chopping along as it digests several earnings reports. Then look for NFP Friday morning to provide direction into the weekend.

II. RECAP OF THE ACTION

Sellers early Monday discover a strong responsive bid. The rest of the holiday week is spent rallying.

The last week performance of each major index is shown below:

Rotational Report:

Energy really strong again and continuing to trade on its own planet—way out in front for a second week. Flanked by sketchy Financials. However, strength was broad and Utilities lagged.

slightly bullish

For the week, the performance of each sector can be seen below:

Concentrated Money Flows:

Industry flows muted skewed heavily to the buy side of the ledger.

bullish

Here are this week’s results:

III. STOCKLABS ACADEMY

Pressing the whole signal

Last week we took a close look at the statistics behind the bullish hybrid overbought signal. Now in hindsight, we can see the data-driven analysis worked out well. This is not always going to be the case. Just because something has historically happened with a statistically significant probability does not mean it will happen again.

If you’ve hung around the world of speculative finance for any amount of time then you’ve certainly read or heard someone say, “past performance is not indicative of future results,” usually it is some brokerage covering their ass.

But the phrase is important, to understand, viscerally.

Anyhow the hybrid overbought signal extends through Monday, close of business. Therefore our bias remains bullish through Monday.

Note: The next two sections are auction theory.

What is The Market Trying To Do?

Week ended searching for sellers.

IV. THE WEEK AHEAD

What is The Market Likely To Do from Here?

Weekly forecast:

Strong Monday. A bit of continuation into Tuesday, then look for remarks from Fed Chairman Powell Tuesday morning to introduce some selling into the tape. Price is choppy through the rest of the week, chopping along as it digests several earnings reports. Then look for NFP Friday morning to provide direction into the weekend.

Bias Book:

Here are the bias trades and price levels for this week:

Here are last week’s bias trade results:

Bias Book Performance [11/17/2014-Present]:

Semiconductors forms a wedge, potential failed auction in Transports

Markets fluctuate between two states—balance and discovery.  Discovery is an explosive directional move and can last for months.  In theory, the longer the compression leading up to a break, the more order flow energy to push the discovery phase.

We are monitoring two instruments, the Nasdaq Transportation Index and the PHLX Semiconductor Index.

Transports took out their old swing high in grand fashion last Tuesday only to display a bit of vulnerability a few short days later Friday. Bear in mind this index was closed Thursday in observation of Thanksgiving. The Friday candle print is therefore not carrying as much weight as we’d normally assign. However, when we look back at this chart in a few months, that nuance will not be apparent. It will just look like another price pattern where we make a new swing.

This breakout needs to be monitored closely. Bulls will want to see buyers step in soon and sustain this breakout. Otherwise we could see a swift reversal back down into that old range,

See below:

Semiconductors are working higher after the fourth major thrust of the most recent bull run dating back to May 2020. The manner in which the rally continues deserves to be monitored closely. We are in a steep ascent, the kind which occasionally mark peaks. For now discovery up continues and we remain bullish. But if this wedge breaks, the correction could be swift in the opposite direction.

We don’t know.

See below:

V. INDEX MODEL

Bias model is neutral for a third consecutive week. No bias.

VI. STOCKLABS HYBRID OVERBOUGHT

On Monday, November 16th Stocklabs signaled hybrid overbought. This is a bullish cycle that runs through Tuesday, December 1st, end-of-day. Here is the performance of each major index so far:

VII. QUOTE OF THE WEEK:

“It’s not a bad way to live once you let go of the idea that you deserve more.” – J.J. Abrams

Trade simple, live simple

 

 

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No trading report, HAPPY THANKSGIVING

I just started my morning rituals. Checking economic events. Pre-market movement from tera cap stocks. A brief scan of Twitter. Splitting the market profiles and annotating key price levels etc etc…and I decided to pass on this session.

Too much jammed into the first few hours. Everyone’s trying to wrap up and head out so you know what? I’mma head out now.

Cheers lads. I am humbled by your interactions and the time you spend reading all the thoughts I type into this here blog. All the Fleets and Tweets and Insta stories. You guys have kept me accountable to my research in a way I may not have been able to achieve on my own.

It is very american to think you have to go at everything alone. The lone ranger, taking on insurmountable odds with a few lucky twists of fate. It is ingrained into our culture. Into our story telling. Our pop culture lore.

The truth is while I fight like hell to make a few scratches on the earth that say, “Raul had True Freedom” as a fierce independent, there is a whole team of people behind the scenes. Some working directly with me. Others doing their own hustle but doing it consistently enough that they’re almost always ready to help. Like my homie Eric at the nearby hardware store, my dear friend Dean who keeps the fluids maintained in my work van, the crazy Albanian who makes a damn fine veggie skillet, Elder Raul and all his wisdom. The list really is endless and spans across the whole country. Then there’s all the products I can cue up with a few thumb swipes at Amazon that just magically appear at the entry port of Mothership. Google. My life is in Google’s hands.

Daddy Elon and Humble Jack for making me a modest fortune this year.

There is a literal army of help that powers my independence.

You guys through, the readers and fellow speculators, you’re the most swarthy bunch of all right folks I have the honor of corresponding with.

Cheers, and Happy Thanksgiving.

May the celebration roasts retain their moisture and bring you vigor and health.

Salute.

Raul Santos, November 25th 2020

 

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Compression within compression, here is Tuesday NASDAQ trading plan

NASDAQ futures are coming into the Tuesday before Thanksgiving with a slight gap up after an overnight session featuring elevated range and volume.  Price worked higher overnight, without any seller confrontation until price neared the upper quadrant of Monday’s range around 3:30am New York. Price fell off the Globex high and eventually found balance, and as we approach cash open price is hovering above the Monday midpoint.

On the economic calendar today we have consumer confidence at 10am followed by 2- and 7-year note auctions at 1pm.

Yesterday we printed a normal variation down. The day began with a decent gap up inside last Friday’s range. Buyers engaged the tape on the open and spiked price up to the 12k century mark, which aligned nicely with the Friday naked VPOC. It was all sellers from here on. Price moved sharply lower until catching a bid around 11:15am, just a bit below last week’s low print. Buyers slowly rotated price back up to the daily midpoint. Sellers defended a first attempt through the mid, but the slow drift eventually reclaimed the mid and we ended the session right on it.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 11,905. From here sellers continue lower, tagging 11,900 before two way trade ensues.

Hypo 2 buyers gap-and-go up through overnight high 11,979.25 and stall out just above at 11,982.25 before two way trade ensues.

Hypo 3 stronger buyers rally up to 12,036.50 before two way trade ensues.

Levels:

Volume profiles, gaps and measured moves:

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White House mention of Beijing puts wiggle in early price action / here is Monday NASDAQ trading plan

NASDAQ futures are coming into the holiday week with a slight gap up after an overnight session featuring elevated range and normal volume. Price worked higher overnight, working up near the upper quadrant of last Friday’s range before falling back into the middle of balance. At 8:45am this activity out of the White House caused a minor stir in the price of NASDAQ futures:

As we approach cash open, price is hovering right along last Friday’s midpoint.

On the economic calendar today we have PMI composite flash at 9:45am, 6- month and 2-year bill and note auctions at 11:30am and 3-month and 5-year note auctions att 1pm.

Last week was a bit of a chop fest. Little price discovery happened except for what we saw from the Russell 2000 which was bullish divergent. This suggests risk tolerance remains elevated. The last week performance of each major index is shown below:

On Friday the NASDAQ printed a neutral extreme down. The day began with a slight gap up beyond the Thursday range. After an open two-way auction sellers managed to close the small overnight gap before buyers made a small rotation higher and into range extension up. Said buyers never exceeded the Wednesday high. Instead we fell back to the midpoint and chopped along its topside for several hours. Late in the session a wave of selling pressed us into a neutral print and continued slashing lower into settlement. The move never made it through the prior session low.

Heading into today my primary expectation is for buyers to hold bids above 11,900 setting up a move up through overnight high 11,979. Look for sellers up at 12,000 and for two way trade to ensue.

Hypo 2 sellers work into the overnight inventory and close the gap down to 11885.25. This sets up a run down through overnight low 11,873.50. Look for buyers down at 11,800 and for two way trade to ensue.

Hypo 3 stronger buyers trade up to 12,035.75 before two way trade ensues.

Levels:

Volume profiles, gaps and measured moves:

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Bullish as heck and all fired up

Nothing surprises me anymore. So like water starts dripping from the ceiling, my first instinct isn’t to fall on my knees and wave my hands around saying, “Why? Does this? Happen…to me?” like I witnessed today. I just think for a minute, then grab a bucket and make a good guess of the tools I’d need to stop water from leaking thru the ceiling. Then go in the attic and take a look around.

Watch my big dumb head on the roofing nails that often pepper attic ceilings like some kind of medieval rack. Shine around looking for water then stop it. If a part is needed, run up to the heckin’ nearest hardware store and buy it.

They don’t have it? What DO they have that can stop the leak, even if only temporarily? Adapt.

The line is long as heck. An excellent opportunity to check in with your posture and breathing. Even easier now because nobody can see if your lips pucker when you draw your abs in (they won’t if you’re shwifty). The total is $11.76. Pay $12. Cashier not used to making change, doesn’t give a quarter back but two dimes and four pennies. No problemo. It all goes in the coin jar next to the key hook anyhow. Create efficient systems for everything.

It is hardt coming from a formal accounting education, accumulating tons of street smarts along the way, to being a man who live in a van down by the river. Yet, over time, when convictions and cock remain strong, it become immediately apparent that shit is destined to be handled if you’re around.

Take it as it comes. And for the love of vanity keep it sexy.

All that ‘how to be a they/them’ guff aside, in fact casting aside all human reason aside, these new heckin’ algorithms I am privy to thru my early access to Stocklabs are whispering bullishly in ma’ears. Who am I to question the cold, dead truth of an algorithm? A bird?

I am most certainly not a bird. I’m a man. I shore up shelters and clear dead trees and wrestle alligators. I read fiction and non-fiction and feel empathy for others. I gather nutrition from Costco and cook badass meals 2-3 times a day. I extract fiat american dollars at a steady clip from the global financial complex then convert said fiat into real assets like power tools and steel. Not the kind of they/them you’d ever consider trifling with, if seen IRL.

While I can almost always be seen carrying a sunny disposition and a fat stack of green rags, there’s a sparkle in my left eye that warns passerbys that I might could just make to kill.

She/hers regularly tell me I look like their favorite teevee cereal killers. Which physically, I don’t, but I get it. It’s the way I wiggle my words.

Best you queue up a Lyft when I arrive, lest your she/her find herself caught up in some RAUL prose of the persuasive variety. Things get awkward. But what’s to gain?

Not much.

I am supes bullish into the Fed Minutes. Into Thanksgiving. And clean into December.

Ciao,

Raul Santos, November 22nd, 2020

And now, the Weekly Strategy Session. Enjoy.


Stocklabs Strategy Session: 11/23/20 – 11/27/20

I. Executive Summary

Raul’s bias score 3.03, neutral. Watch for markets to drift higher into the holiday week. Watch for Fed Minutes out Wednesday afternoon to accelerate whatever price action is prevailing prior to the release.

U.S. Markets will be closed Thursday in observation of Thanksgiving.

II. RECAP OF THE ACTION

Choppy week. Little directional discovery from equity indices. The bullish divergence by the Russell 2000 suggests risk tolerance is running high.

The last week performance of each major index is shown below:

Rotational Report:

Energy continues to trade on its own planet—way out in front last week. Utilities and Staples weak is a good indication that investors are not taking a flight to safety. Bulls however would like to see the key Tech sector a bit stronger.

neutral

For the week, the performance of each sector can be seen below:

Concentrated Money Flows:

Industry flows muted for a second week. No major skew.

slightly bullish

Here are this week’s results:

III. STOCKLABS ACADEMY

Working the hybrid overbought signal

Stocklabs flagged hybrid overbought on Monday, November 16rd at the end of the day. That signal runs until close of business Tuesday, December 1st.

I am sticking with the 12-month algo.

Taking a look at the past performance, we can see that this signal has been slightly bullish, historically:

With 85 samples, the signal has an average return of nearly 0.25% and nearly a 65% win rate.

Since the signal fired last Monday, markets have drifted a bit lower. If SPY reverts to its old statistics, we are looking at 2.25% worth of upside between now and the end of December 1st.

These stats have me bullish heading into month-end.

Note: The next two sections are auction theory.

What is The Market Trying To Do?

Week ended searching for buyers.

IV. THE WEEK AHEAD

What is The Market Likely To Do from Here?

Weekly forecast:

Drift higher into the holiday week. Watch for Fed Minutes out Wednesday afternoon to accelerate whatever price action is prevailing prior to the release. Then expect a choppy, low volume session Friday.

Bias Book:

Here are the bias trades and price levels for this week:

Here are last week’s bias trade results:

Bias Book Performance [11/17/2014-Present]:

Semiconductors choppy on the highs, Transports flirting with a breakout

Markets fluctuate between two states—balance and discovery.  Discovery is an explosive directional move and can last for months.  In theory, the longer the compression leading up to a break, the more order flow energy to push the discovery phase.

We are monitoring two instruments, the Nasdaq Transportation Index and the PHLX Semiconductor Index.

Transports are lingering up beyond their multi-year range a bit. The longer price can hold up here, the more likely a break-out becomes. However, our primary expectation is for sellers to defend the top of range and eventually begin working price back down into balance.

See below:

Semiconductors are sort of chopping along in big ranges up near all-time highs. It is difficult to say whether they are currently in a discovery up phase. It could be a mini balance. The longer time frame definitely continues to be discovery up. However, this being the 4th leg of the phase, it can become a bit tricky up here. A fresh leg higher could be the start of something much bigger, or we could be close to an intermediate term top.

We don’t know.

See below:

V. INDEX MODEL

Bias model is neutral. No bias.

VI. STOCKLABS HYBRID OVERBOUGHT

On Monday, November 16th Stocklabs signaled hybrid overbought. This is a bullish cycle that runs through Tuesday, December 1st, end-of-day. Here is the performance of each major index so far:

VII. QUOTE OF THE WEEK:

“Don’t be distracted by emotions like anger, envy, resentment. These just zap energy and waste time.” – Ruth Bader Ginsburg

Trade simple, cultivate visceral indifference

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Weekend thoughts from the snake man

Not going to trade today. The week has been choppy and less volatile than recent history. I do not have the best track record on Fridays like these. Also I am to attend a tree and shrub pruning seminar today hosted by some professor at Michigan State University who has invented over 100 tools. I dig that he invented tools and I look forward to learning something different today.

The liberal arts are keeping me sane in lieu of social interaction. Instead of hot yoga I have philosophy and meditation. Instead of all-night raves in unsanctioned buildings I’ve taken a deep-dive into the fiction and non-fiction that came out of San Fransisco in the early 60s. Instead of pumping iron and swimming laps I’ve dusted off the old saxophone.

The only problem is I weighed 182lbs last week at the doc and that is a lot of mass to carry into snowboard season. While most don’t see it because I carry weight well, I am clinically overweight. With a BMI of 25.4 which is pretty disgusting. Something has to change.

I have taken to eating chicken eggs like a snake. Two at a time. Nearly every day. Prior to the pandemic I consumed maybe 5-6 eggs a month. Things are changing.

The isolation is creating odd voids that I’ve taken to filling with eggs and panned cakes and it shows.

It’s not so much the work from home part. I’ve been work from home for nearly eight years. It’s the entertain from home I am new to. I prefer to take my libations kicks out in public. Not alone.

Most illnesses can be traced back to either consuming too much or not enough alcohol. Right now I am plagued by a lack of consumption. I cannot drink more than a few sips of burbon without going to sleep in the tranquil cells of Mothership. Something has to give.

Anyhow. Either I need to figure out how to liven this place up or start taking my hooch intravenously because I am succumbing to the great American sickness—a dull mind and pudgy growths of fat along the back and thighs.

These are my concerns, dude. Not yours. I hope this blog entry finds you in good health and thriving cognitive spirits. To hell with the pandemic. The big bad cold. I wonder how many novel corona viruses were going around San Fransisco in the early 60s…free love, man.

Alright, let’s dial back in come Sunday.

Until then, I remain, eager for action while grotesquely long bitcoin and Big Tech.

Raul Santos, November 20th, 2020

 

 

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Back near Friday the 13th lows, here is Thursday NASDAQ trading plan

NASDAQ futures are coming into Thursday with a slight gap down after an overnight session featuring elevated range and volume. Price worked lower overnight, trading down near but not exceeding last Friday’s low. Since around 4am New York buyers have reversed much of the overnight selling. At 8:30am jobless claims data came out worse than expected. So far no reaction, and as we approach cash open price is overnight a few points below the Wednesday close.

Also on the economic calendar today we have existing home sales at 10am followed by 4- and 8-week T-bill auctions at 11:30am.

Yesterday we printed a neutral extreme down. The day began with a slight gap down that buyers quickly resolved during an open two-way auction. Shortly after the open sellers spiked price down through the Tuesday low but the move had no follow thru. Instead the morning low was set before 10am and we spent the rest of the morning auctioning higher. Buyers worked price up into the top quadrant of Tuesday’s range but could not take out the high. Instead price fell back down into the midpoint around 2pm and after buyers defended the mid once, they failed during a more rapid bit of selling late in the afternoon. The closing selling pressed us into a neutral print and closed out the session on the lows.

Neutral extreme down.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 11,883.50. From here buyers continue higher, up through overnight high 11,903 before two way trade ensues.

Hypo 2 buyers buyers trade up to 11,941.50 before two way trade ensues.

Hypo 3 sellers press down through overnight low 11,804.50. Look for buyers just below at 11,800 and for two way trade to ensue.

Levels:

Volume profiles, gaps and measured moves:

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Calm drift, leaning bullish, here is Wednesday trading plan

NASDAQ futures are coming into Wednesday with a slight gap up after an overnight session featuring elevated volume and range. Price worked down through the Tuesday low for a bit, poking down into Monday’s lower quadrant but not exceeding the low before popping back to UNCH. At 8:30am housing starts/permits came out slightly better than expected. As we approach cash open price is hovering below the Tuesday midpoint.

Also on the economic calendar today we have crude oil inventories at 10:30am followed by as 20-year bond auction at 1pm.

Yesterday we printed a neutral day. The session began with a slight gap down. Buyers were able to resolve the open gap during an open two-way auction and even took out the Monday high by a few ticks before sellers stepped in. Said sellers worked price back down to the Monday midpoint but were met there by a strong responsive bid. Said bidders worked price back up through the midpoint and we sort of chopped all over the mid until going range extension up around 1:45pm New York. After a bit more chop, some late day sellers pressed us into a neutral print. The day ended with price flagging along the lower quadrant of the day’s range.

Heading into today my primary expectation is for buyers to press up through overnight high 12,023 setting up a tag of 12,036.75 before two way trade ensues.

Hypo 2 sellers press down to 11,944 before two way trade ensues.

Hypo 3 stronger sellers press down through overnight low 11,916.50 setting up a tag of 11,900 before two way trade ensues.

Levels:

 

Volume profiles, gaps and measured moves:

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