Inventory Grab Alert 4/30/09!

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lawrence chan made a point about the bots overbuying/selling and having to get closer to neutral hegde at end of day,an explanation for the last 30 minutes of many regular trading hour days, it was a few weeks back so one could look it up if they wanted to read it, but a good point nonetheless
 
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? :-)

D.
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It took price to go into the stop zone below 882.50 (a typical 2 point zone I have mentioned before) to have the last 1900 contracts to go neutral......then price probed lower after the area was neutralized. This played out very typical of a zone that goes to neutral (sellers still in control as buyers are unwilling to defend that pricing level) followed by range extension lower.
 
Quote from EdgeHunter:

No Soup for You... :) ... on that one... nice on the rest of them...
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The area went neutral before we traded down to the 875's.......previous held long inventory bailed fast and bailed early today! :eek: CHICKENS!!! :D

Oh.....875's as a price level is not free and clear yet! :eek: Our new long holders zone of the 877.75 to 881's is not all that strong. I will be looking for a test of this level in the next trade day or two, once sellers use these higher pricing levels (price improvement 890's or higher) to reload some positions for any new leg down. :)
 
Going into tomorrow, I will be watching the order flow with any return to the 881's........I will be watching to see if that area gets defended or not since we do have additional zones of resting inventory just below in the 840's/830's :)

That was one heck of a fun 24 hour period.....this is the type of market action that makes trading always interesting! :cool:
 
And last but not least.....the 882.50 Delta Divergence long entry signal, in a downtrending market AFTER the area had already gone neutral in the grand scheme. :)

http://www.charthub.com/images/2009/05/21/ES_4.png
(chart example shows how to have handled a LONG trade off that divergence, even after a less than optimal LONG entry)


Auction Market Theory helps with "context" of recent/current price action during the trade day. :) The Delta is my right hook and AMT is my left hook, as I fight the "other side" of my trades. :eek:

:D
 
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