Inventory Grab Alert 4/30/09!
- Thread starter AMT4SWA
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882.50 dam breached with positive CD divergence to spare. Just another example of the point I made yesterday about not taking CD div verbatim. Maybe we should rename it CE for caveat emptor?
However, CD div on double touch of 889.75 is negative (-14k)... the trend is your friend?
D.
Quote from manlycure:
882.50 dam breached with positive CD divergence to spare. Just another example of the point I made yesterday about not taking CD div verbatim. Maybe we should rename it CE for caveat emptor?
However, CD div on double touch of 889.75 is negative (-14k)... the trend is your friend?
D.
Interesting concept. Short cover rally starting about now?.
JW
No Soup for You...Quote from AMT4SWA:
Auction Market Theory says 875's TEST should be on deck.......lets see what we get.
... on that one... nice on the rest of them...The distributions of delta did not at all look like what I would normally see before a breakout run to a higher range of price......there has also been an absence of buyers willing to buy the price levels everytime we have traded up to the 927's these past days (this is important from an auction market theory standpoint).
Quote from EdgeHunter:
No Soup for You...
Not sure what the AM theory says on that reversal mid air between two long zones (882.50-885 & xxx-875). Weak longs' stops hit as price dropped below 882 and subsequently replaced by longs who took over the rally? I see a new layer of longs (+14k) in the >882 zone now.
D.
A brand new inventory zone that gave them up fast, after the lack of newly initiated buying interest just after the second 882.50 touch. As I had mentioned earlier today.....since we had already neutralized any previous holders down to the 875's from the last time price was at these levels, there was very good likelihood the market would trade down to that area (and it did finally trade down to what used to be the 875's to 879 zone). The price run down from a significant area of resting inventory which held (924-927 zone), has achieved the objectives for Auction Market Theory criteria. We had the entire range of inventory here down to the 875's neutralized......sellers were able to carry positions from much higher pricing levels (920's) and pass them off into another range of resting supply (caused this area to go neutral and negate the previous held long inventory from the last time price was trading down to 875's). This targeted area of previous resting long inventory was their primary exit...........Sellers from above drove price to a zone of weaker hands and then passed off their held short positions to the bailing out long inventory holders. Sellers were at this point BUYING (to cover) what the bailing out long holders were SELLING (to cover).....Exit COMPLETE.
Everything after that point today was just price seeking a level that would finally entice some buyers to come in and be willing to buy. Buyers to this point have decided to buy the 877's up, so we will see how strong they are tomorrow. :eek:
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