Inventory Grab Alert 4/30/09!

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Quote from gomifromparis:

Didn't the previous short inventory got cleared on the runnup to 948-949 ?
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No......the overall net short position is greater than yesterday.

http://www.charthub.com/images/2009/06/02/ES.png


More net short have been willing to hold positions today versus yesterday.....regardless of the fact we traded 949.00 touch.

In other words......as price traded through yesterdays HOD you should have been ready to sell the heck out of any new highs today, with that kind of divergence in place.......that was what I call a "layup" trade opportunity. :eek:
 
I will also add, looking at the overall distribution from the last two days is telling me a TON of held LONG positions (probably from much lower levels) have bailed and taken profits......they CA$H'd out for a big score. :)

Buyers in the upper 600's (665.75 to 699.75) just made a 250 point run.....that was a very successful trade for them. :) They bought at wholesale and just dumped off at high retail......that was a very nice hit! :cool:
 
Now I will be watching the 934's and 927's.........if these levels get taken out, that would confirm to me we just locked in a intermediate term top at the 949.00 level.

Punching through 934's and then 927's will get many of the "late" retail buyers (smaller players) bailing out......most of the big commercials I would say are on the "right" side of this trade at this point.
 
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.
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Like I said yesterday.....the test of a new zone will happen often and today we had exactly that. Sellers used today's rally to the 949.00 level to build position size and upwardly adjust final position cost basis.
 
Quote from AMT4SWA:

Like I said yesterday.....the test of a new zone will happen often and today we had exactly that. Sellers used today's rally to the 949.00 level to build position size and upwardly adjust final position cost basis.
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This is also an excellant way to see smart money distribution take place over time... thanks... :)
 
Quote from AMT4SWA:

Like I said yesterday.....the test of a new zone will happen often and today we had exactly that. Sellers used today's rally to the 949.00 level to build position size and upwardly adjust final position cost basis.
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The Divergence on the test of that zone stuck out like a sore thumb.

Lets go downtown!
 
Quote from EdgeHunter:

This is also an excellant way to see smart money distribution take place over time... thanks... :)
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Absolutely correct......this same type of action had me very bearish and shorting like a mad man back in November of 2007 (there was very large negative delta divergences in place then).

:)
 
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