Es Algo Late Day
- Thread starter pwrtrdr
- Start date
Actually, Thursday was the day we had the major LONG inventory grab. I was covering the Equities/Futures activity here from Thursday's action. It was actually nice to have the whole Friday off today with the great weather here in Austin!Quote from AMT4SWA:
Major inventory grab events are not that common, when the market is cleaning out all the last held LONG or SHORT inventory that has been resting in the market. Well over 95% of the time it does take Equities BUY or SELL program activity to get to the point the last held inventory finally capitulates and says "screw this" in the futures market.
The last few days in the ES we have had growing SHORT inventory into each new slightly higher high (SHORT accumulation). We have also had the last few days significant held LONG inventory unwinding into the pullbacks....to the point on Friday we had a major LONG inventory grab. Within a minute or so of the last LONG inventory going to neutral, the Equities SELL program activity which drove the market lower (as held LONG inventory covering out flat dominates the order flow in the ES) came to an end.
Those bigger liquidity players SHORT in the ES from the highs, seeing the last LONG inventory supply go neutral, caused them to accelerate "market order" driven profitable covering (SHORT covering rally starts). On Friday, Equities actual came in as buyers again with BUY program activity right into this initial SHORT covering acceleration in the ES order flow.....and back up we go!.
Any of the middle of the days range sellers who were still holding SHORT inventory (who did not cover off the days lows) were forced into additional SHORT covering in the ES with the continued Equities BUY program activity......more up we go!
If you spend some time watching all this supply and demand activity, you will see many times a week were Equities is taking advantage of the volume distribution imbalances in the ES.
Hi AMT,
Are you calculating the delta with a charting program or did you write some code?
On using the TICK for Buy/Sell programs, Do you use this for countertrend trading, trend trades.... and are you looking for just a quick scalp or identifying a position to build in combination with delta (short/long inventory accum)?
Thanks,
Central Banker
Are you calculating the delta with a charting program or did you write some code?
On using the TICK for Buy/Sell programs, Do you use this for countertrend trading, trend trades.... and are you looking for just a quick scalp or identifying a position to build in combination with delta (short/long inventory accum)?
Thanks,
Central Banker
learn enough from here to hand draw these charts, u will learn more in the next 6 months drawing by hand, than you will reading books for the next decade,and it works in any market..............http://www.trading-naked.com/library/market-profile-softwarereview07.pdf
i think he looks to see if buy/sell programs are trying to push the market to these inventory levels to be liquidated. After he sees the liquidation. the market reverses most of the time since hedgeis and commercial banks rarely buy higher highs or sells lower lows.they constantly try to move the market to the big inventories.dumping longs and building shorts at the top of a multiday range and dumping shorts and building longs at the bottom of the range.
but he will have to confirm
AMT uses Investor / RT to watch Cumulative Delta Readings... on the ES futures... http://www.linnsoft.com/tour/techind/vb.htm
Cumulative Delta is also available in Market Delta's charting platform.... http://www.marketdelta.com/
it is also available in other platforms but Investor RT seems to do the best job of charting Cumulative Delta
