Inventory Grab Alert 4/30/09!

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Quote from riskfreetrading:

What was your entry price(s) on these trades?
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Before the trade entry I had mentioned we had a delta zone in the 924's to 927's that should be sold......as price traded to this zone the next day, I actively sold the zone and have entries (held SHORT inventory) from the 926.75 price level.
 
Quote from SoCalTrader619:

I'm gonna throw my .02 out there and venture to say that the nearest held short inventory zone is from 882-885 and formed over multiple price rotations during Fridays trading.....

Ok AMT... let us have it!!! haha
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Yes that area is a zone as well as 894 to 896's just above. The PRIMARY delta zone though is still the 924's to 927's......this is a significant zone of resting short inventory that has HELD PRICE to this point in our rally off the yearly lows. Expect any new trading up to that level again to cause some very reactive price activity. The zones between current price and that 924 to 927's area will not be as likely to be defended on retests (so keep that in mind). :)
 
Quote from SoCalTrader619:

AMT, what do you think about this chart showing a large divergence in the CD since the last time price traded at these levels?
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Yes I see that, which may set up for a decent intraday LONG trade once the cash session opens (when higher volume levels return). We will have to see what transpires between now and the cash session open first to see if a trade set up potential remains.
 
Quote from manlycure:

Being largely visually impaired (as far as delta zones are concerned) I see a short zone from 880-882 and a shallow one from 877-879, long zone from 874-875, extending down to 869.50. Then short zone from 867-869.50.

$.02,

D.
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I have listed the levels above our current price I will be watching, and the 867 to 870 delta zone is the next LONG holders resting inventory area below I will be watching.
 
Quote from SoCalTrader619:

One last chart....

How does this look for the most important short (red) and long (blue) zones?
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The area you have "zone'd" in the lower 840's will not be very strong imo. The delta volume distribution which formed the 867 to 870 zone caused many holders from that lower level to already thin out any remaining held inventory from lower 840's (there will be some defending of that level if tested imo, but nothing of any significance......maybe good for one decent bounce with any additional retests punching on through).
 
Quote from AMT4SWA:

The area you have "zone'd" in the lower 840's will not be very strong imo. The delta volume distribution which formed the 867 to 870 zone caused many holders from that lower level to already thin out any remaining held inventory from lower 840's (there will be some defending of that level if tested imo, but nothing of any significance......maybe good for one decent bounce with any additional retests punching on through).
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Are you assuming that the holders from the 840's took profits at the next "large" inventory zone 867-870+ ? How can we deduce that?

And along a similar line of thinking, would we assume that the net long inventory from 862's bailed and took profits at 924+ ?

All the best,

Stone
 
Quote from stoneface:

Are you assuming that the holders from the 840's took profits at the next "large" inventory zone 867-870+ ? How can we deduce that?

And along a similar line of thinking, would we assume that the net long inventory from 862's bailed and took profits at 924+ ?

All the best,

Stone
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I know this by looking at the volume distribution from my experience with delta. I can see evidence that buyers of the lower 840's were compelled to thin out inventory as price rallied from their buy zone (up to a pivot high of 887.00) and then traded back down (to a pivot low of 862.50). The distribution of delta volume formed as price traded the 862.50 pivot area, and then 866.75 pivot area on the 30th of April shows me enough evidence. The distributions show me buyers from the next lower levels lost confidence price would hold (so they dumped inventory with the thought of at least locking in some profits on remaining positions entered from the 840's). The thinning out of inventory was probably done with the thought price WAS GOING TO come right on back down to lower 840's.

In regards to 862's from your question......yes, some bailed at 924's to 927's......and more will thin out on each failure of support as price drops back towards 862's again. Reading the delta volume distribution as this plays out is how I have gained my edge. I use this edge to determine what is or is not a significant zone to pay attention to.....this was developed over time through my experience with delta and auction market theory.
 
Quote from SoCalTrader619:

AMT, what do you think about this chart showing a large divergence in the CD since the last time price traded at these levels?
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BTW, great call......I had a delta based LONG trade entry signal @ 877.50 tonight but I did not take the trade. I will wait until the cash session morning open and then see what we have. :)

Time to go to bed.....it is already 03:00 am CST!!! :eek: :D
 
Quote from AMT4SWA:

Before the trade entry I had mentioned we had a delta zone in the 924's to 927's that should be sold......as price traded to this zone the next day, I actively sold the zone and have entries (held SHORT inventory) from the 926.75 price level.
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Nice hold and score AMT.

Did you put 1/6 of your max or did you have chances (or added lower) to put closer to 6/6 of your max position before the bottom dropped out?.

Regards

JW
 
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