Inventory Grab Alert 4/30/09!

[SoCalTrader619]

Quote from AMT4SWA:

Of note today, the neutralized delta zone did not cause the price to range extend 5 points or more. This shows there were minimal levels of remaining held inventory 940's-944's AND bulls were not willing to buy the upper levels of that previous delta zone to maintain the rally strength. Instead, we built up a very significant new delta zone of resting held short inventory (many LONG holders from lower level entries taking profits mixed with new initiated sellers building up sizeable SHORT positions).

This area has become very important now as a result of today's volume distribution.

Do you find that price will usually retest a newly created zone within the following day or so, before continuing a move?

Also, if it retests during AH, could it run right through the zone on low volume and the zone still be valid? We've seen how crazy AH movement can be.

 

[AMT4SWA]

Quote from SoCalTrader619:

Do you find that price will usually retest a newly created zone within the following day or so, before continuing a move?

Also, if it retests during AH, could it run right through the zone on low volume and the zone still be valid? We've seen how crazy AH movement can be.

Yes and Yes.....

For the first question, I would say it happens "often" more so than usually. Your second question is the type of action where you will see gap fills right after the cash open, and then price will take back off in the AH session move direction (I LOVE fading those type of AH session moves).

 

[Insearch]

Quote from AMT4SWA:

Of note today, the neutralized delta zone did not cause the price to range extend 5 points or more.

When you say 5pt range extension, do you mean from the stops zone at 946 or from the top of the zone at 944? I'm inclined to think 944 but just wanted to clarify . . .

 

[SoCalTrader619]

Quote from AMT4SWA:

Yes and Yes.....

For the first question, I would say it happens "often" more so than usually. Your second question is the type of action where you will see gap fills right after the cash open, and then price will take back off in the AH session move direction (I LOVE fading those type of AH session moves).

Thanks for the helpful response!!!

Another question (I've got a lot haha)... What would you say are the most important times to watch the market outside of RTH? For example, if want to trade the AH session, should I be watching the ES beginning an hour prior to the EUR session, right at the open, another time later on?

What I mean, is that you always seem to be at your computer at the right time in the middle of the night. Is this because you are sitting there for hours waiting for a setup, or do you have specific times you like to watch the markets when trading overnight? Thanks!

 

[Insearch]

Quote from SoCalTrader619:

Thanks for the helpful response!!!

Another question (I've got a lot haha)... What would you say are the most important times to watch the market outside of RTH? For example, if want to trade the AH session, should I be watching the ES beginning an hour prior to the EUR session, right at the open, another time later on?

What I mean, is that you always seem to be at your computer at the right time in the middle of the night. Is this because you are sitting there for hours waiting for a setup, or do you have specific times you like to watch the markets when trading overnight? Thanks!

What I want to ask is, when do you sleep, the weekends? . . . .

 

[AMT4SWA]

Quote from Insearch:

When you say 5pt range extension, do you mean from the stops zone at 946 or from the top of the zone at 944?

5 points from top of the Delta Zone.......so today if we had typical range extension AFTER a zone goes neutral, we would have traded to the 949.75 level at a minimum.

 

[chuckt101]

Thanks for your explanations!

Quote from AMT4SWA:

Yes and Yes.....

For the first question, I would say it happens "often" more so than usually. Your second question is the type of action where you will see gap fills right after the cash open, and then price will take back off in the AH session move direction (I LOVE fading those type of AH session moves).

Wait, does this mean, say, we rally up to 960 tonight, you'd be looking for the gap fill after cash open and then another rally?

So, the bulls use AH to put the short holders on the wrong side and force them to bail as price returns to their zone. This allows for bulls to use the short bailing momentum to continue driving price up?

 

[Insearch]

Quote from chuckt101:

Thanks for your explanations!



Wait, does this mean, say, we rally up to 960 tonight, you'd be looking for the gap fill after cash open and then another rally?

So, the bulls use AH to put the short holders on the wrong side and force them to bail as price returns to their zone. This allows for bulls to use the short bailing momentum to continue driving price up?

Trying to understand . . . how can you assume that only Bulls will trade the AH?

AMT will be shorting the hell outta the 44.25-47.25 zone . . . . I'd think more shorts will be awake tonite than will be longs, no?

And at cash open, the shorts that were asleep during AH will be shorting . . .

 

[SoCalTrader619]

AMT,
If I have all the Short and Long Zones annotated on my chart, is it safe to remove a zone as soon as it is properly neutralized? For example, the 924-927 zone that held up multiple times. Should I have it on the chart in case it turns into support, or would you recommend I go ahead and remove it from the chart?

If I do remove it, what are the closest long-holder zones below us?

 

[AMT4SWA]

Quote from SoCalTrader619:

Thanks for the helpful response!!!

Another question (I've got a lot haha)... What would you say are the most important times to watch the market outside of RTH? For example, if want to trade the AH session, should I be watching the ES beginning an hour prior to the EUR session, right at the open, another time later on?

What I mean, is that you always seem to be at your computer at the right time in the middle of the night. Is this because you are sitting there for hours waiting for a setup, or do you have specific times you like to watch the markets when trading overnight? Thanks!

The most important time to watch is the period of the EU open at 02:00 CST......from that time on I like to watch the first hour or two (when I am in new held positions or if price has traded back to levels near my held positions). From the EU open to the US open, it can get wild at about any time in between so keep that in mind.

I also use alerts as needed when holding positions for extended periods. For my sleeping patterns, I just fit my sleep around whatever types of trades I am in.....it is not really that hard for me to stay up some nights.