All Quiet – December 7, 2011

[Billy]

Forum Clusters 111207.xlsx

Money Flow finished net neutral for the day and price barely moved on a closing basis. But volatility keeps dropping, further lowering the worst-case risk of the current position with a trailing stop raised to 71.02.

The trend is up. Some aggressive selling attempts similar to Tuesday’s last 30 minutes may repeat in the coming sessions, but as long as price holds above the rising 5-day VWAP (blue line at 73.77) intraday, I really see no reason to start worrying. Daily closes above or at intraday VWAP will hint at active buy programs still running from a majority of large players.

The settings stay neutral for a new position but the entry would be at 73.10 in case of a switch to buy settings. This is due to the wide vacuum space between the first resistance and support clusters. An active secondary entry would also mean a full retracement of the progress made by the initial position.
Billy

[nickola.pazderic]

While we shake and bake, it seems we're moving roughly through a tunnel of love. An idle preoccupation I know, but it suggests that it might be time to pick up some more TNA.

[nickola.pazderic]

Billy,

1. Are the professionals still in charge? (price seems to be sitting atop the VWAP).

2. Is the money flow strong enough to allow us to hold our longs?

Many thanks,

[adam ali]

Interestingly (at least to me), $TICK didn't confirm the move down in the SPY during the 1-3 p.m. EST trading period. Now the market has reversed strongly and moved higher as has the $TICK.

[Billy]

Billy,

1. Are the professionals still in charge? (price seems to be sitting atop the VWAP).

2. Is the money flow strong enough to allow us to hold our longs?

Many thanks,

I was away from my desk in the last hour and will comment in my daily post.
Billy