Inventory Grab Alert 4/30/09!
- Thread starter AMT4SWA
- Start date
- Status
There was a TON of short covering today (even previous short holders from 911's all the way up through 927's are out now) as short inventory holders from higher levels have bailed. The problem now in this type of delta distribution for the bulls, is the absence of potential held short inventory above to cause short covering rallies. Now the bulls are stuck with having to actually BUY this area and up with new initiated buying (of significant size).
Bulls are going to have to keep buy pressure on all the way up to the lower 940's (paying high retail prices now......earlier today they were able to buy at wholesale level 877's to lower 880's), to have a proper zone of resting supply (held short inventory) to exit into. As of today's action, we now have sort of a vacumn from a delta volume distribution standpoint. Price could make extended moves again tomorrow (up or down) as I do not think price will stay at current levels for long. Tomorrow should be very interesting!
Quote from AMT4SWA:
Hey SoCal called today's top early in the day...
It must have been a lucky guess.... haha
It's so exciting to see things play out in a logical manner. Sometimes I look at a chart at the end of the day and wonder why price did what it did, then you come along and explain what happened behind the scenes. Thanks for continuing to post your trades and commentary AMT!!!
It was a good zone to arrest the halt as prices fell off a cliff from the 910/911 ish level back on 5/20 and left a lot of longs in the dust wondering wtf just happened.
Those stuck longs + initiated shorts had some inventory to clear up or double down on.
Good call! I saw the same zone on my screen.
Knowing how to use CD and as you understand Auction Market Theory it will help to see some order within the markets.
Holding a 1/2 position from 911.00 now in the AH session.....first targets for 1/2 of this position and 1/2 of my late in the day 909.75 adds now set at the 905.75 level (up from 904.75).
Next target below still at the 899.75 level.- Status