Neutral Day, Bullish Confirmations – December 8, 2011

[Billy]

I was so proud of myself for dipping a toe in at 3:10... and then along came 3:39....

It looks like lot of buyers came in at 3:59, didn't they?

Ilona, in all likelyhood, only day-traders covering their shorts.

There’s no shame in buying a good reward-risk setup, especially when the ETF has dropped exactly one ATR which is a “normal” volatility retracement.
Billy

[Billy]

This reversal put a stake it in for me. The one minute charts are deceiving. It happened in a humanly impossible burst.

Attachment 11799

We have all the symptoms of a major reversal indeed. VWAP was resistance early and for the first time at the last hour rally attempt. Some large players tried to buy at the lows but larger players were waiting to sell in ambush at VWAP. We are now right on support cluster. Let’s see what the robot settings will tell us tomorrow.
Billy (licking my wounds)

[Billy]

Here they go, at last! Shake-out scenario panning out for now.
Billy

[TraderD]

Here they go, at last! Shake-out scenario panning out for now.
Billy
Attachment 11798

Assuming the scenario holds to the close, can you point out the tell-tale signs in the 20DMF True chart?

Trader D

[Billy]

Assuming the scenario holds to the close, can you point out the tell-tale signs in the 20DMF True chart?

Trader D

"I do not know! We are only test-flying this new RT airplane. No flight simulator is available yet!" - Pascal Willain

[TraderD]

"I do not know! We are only test-flying this new RT airplane. No flight simulator is available yet!" - Pascal Willain

Understood, thank you for following up. Based on the action, it looks like we should equip the test pilots with open-ready parachutes :)

Trader D

[manucastle]

Understood, thank you for following up. Based on the action, it looks like we should equip the test pilots with open-ready parachutes :)

Trader D

And bike clips !

Trev

[EB]

I just realized that TradeStation jumped into the illiquid March 12 contract for the ES yesterday...a full week ahead of schedule. Accordingly, I re-did the liquidity chart (higher = less liquid). At the approximate time of posting yesterday of 3:15 pm EST, readings would have been elevated, but did not take out prior trailing month highs until closer to the close.

[nickola.pazderic]

It seems the market has no patience and will not wait long to try another escape from the box.