Inventory Grab Alert 4/30/09!

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Quote from sponge:

Would someone mind posting a chart showing the CD of this support delta zone?

Thanks!
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The 876.75 LOW of range was formed in the AH session back in May (while the JUN contract was traded)......right after the cash session open that day BUYERS came in strong and ran us straight up in a 3'rd deviation rally...........

http://www.charthub.com/images/2009/05/26/ES.png

At that time, there WAS a LONG delta divergence in place from a previous LOW of range at the 877.00 level (from the time price traded 877.00 to the time price traded 876.75 in the AH session shown above, there was built up "net" LONG resting inventory in place.....once the cash session opened, price was driven away from this delta support zone of 876.75 to 880's :) ).

Now we have the NEW SEP contract in place and the "adjusted" delta zone is 872.75 to 876's.........so we have Delta Zones of resting inventory which "capped" both ends of our current range of price, and each time a Delta Divergence was in place to either BUY or SELL each end of the current range :)
 
Quote from AMT4SWA:

The 876.75 LOW of range was formed in the AH session back in May (while the JUN contract was traded)......right after the cash session open that day BUYERS came in strong and ran us straight up in a 3'rd deviation rally...........

http://www.charthub.com/images/2009/05/26/ES.png

At that time, there WAS a LONG delta divergence in place from a previous LOW of range at the 877.00 level (from the time price traded 877.00 to the time price traded 876.75 in the AH session shown above, there was built up "net" LONG resting inventory in place.....once the cash session opened, price was driven away from this delta support zone of 876.75 to 880's :) ).

Now we have the NEW SEP contract in place and the "adjusted" delta zone is 872.75 to 876's.........so we have Delta Zones of resting inventory which "capped" both ends of our current range of price, and each time a Delta Divergence was in place to either BUY or SELL each end of the current range :)
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Thanks AMT!

Appreciate the explanation. What I was really hoping to see was that LONG delta divergence setup from the previous low at the 877 level that you are mentioning. But I get what you're saying, I think I can visualize it.
 
Quote from sponge:

Thanks AMT!

Appreciate the explanation. What I was really hoping to see was that LONG delta divergence setup from the previous low at the 877 level that you are mentioning. But I get what you're saying, I think I can visualize it.
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Nevermind, I found it on your chart from 5/21, where the delta reached -110,000+... didn't get anywhere near that when it re-visited that support area on 5/26, thereby creating a major delta zone.
 
Quote from stoneface:

I view negative CDV divergences are more of the Desperate Car Dealer w/ full back lot ...

As for the spring, there's a different setup in which I apply the "Spring" metaphor to...

At the end of the day, they're pretty much the same end result if they are going to work.

Your line in the sand... somewhere near your entry, must hold... and everyone else has to bail so you can make some money.
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My quest is to correlate the starting conditions of the trade entry with the expected outcome. Whether scalping or swinging for the fences, I want to use delta to initially set position size, number of targets, how far to space them and how wide to set the stop. Then, use the new delta information as it reveals itself during the trade to adjust the above parameters. I realize it's not a traditional trade setup.
 
The afternoon high was made on lower cumulative delta...are they building a short position intraday?

we may test the highs again ...curious to see how the CD plays out.
 
Interesting place we have ourselves in. Market has options expirations tomorrow in conjunction with the 900 level and 50 MA right below it.

I cant take the suspense :(
 
Quote from tradingbug:

Interesting place we have ourselves in. Market has options expirations tomorrow in conjunction with the 900 level and 50 MA right below it.

I cant take the suspense :(
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Yes tomorrow is the big day imo........the market though in the days ahead will want to go down and test the 876's imo. :) :) :)
 
Quote from AMT4SWA:

Yes tomorrow is the big day imo........the market though in the days ahead will want to go down and test the 876's imo. :) :) :)
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If you had time, could you explain what the deal was with CD today. The market seemed to be creeping up while the CD was trending lower all day. Good day to be taking shots short at 915 and above.

Hope you are having a great vacation.
 
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