Inverted head and shoulders on the SPX?
- Thread starter fantastic4
- Start date
Quote from AMT4SWA:
OK.....put on another level of positions at 754.75 just prior to the globex close. I have all my previous targets set the same for Sunday evenings action......have a great weekend all!
Good luck brother. Thanks for answering my pestering questions, and have a nice weekend.
JW
AMT, I'm confused by your shorts.
Operating on new contract info, you were shorting with a significantly large number of net longs and with no immediately discernible reversal signal.
I have the old contract pulled up and do see shorting opportunities, but only in the morning and only on the old contract.
Now, looking at both, I can't really find a reason for your afternoon shorts? Can you elaborate? Thanks!!
p.s. Red arrows are what I believe are your entries. Green triangles were my long entries this morning (based on new contract Cumulative Net Delta info)
Operating on new contract info, you were shorting with a significantly large number of net longs and with no immediately discernible reversal signal.
I have the old contract pulled up and do see shorting opportunities, but only in the morning and only on the old contract.
Now, looking at both, I can't really find a reason for your afternoon shorts? Can you elaborate? Thanks!!
p.s. Red arrows are what I believe are your entries. Green triangles were my long entries this morning (based on new contract Cumulative Net Delta info)
My guess: He's probably looking back beyond the current contract (he's been following the market down for months), and he also primarily trades in the direction of the major trend (down), mixed with some fundamental analysis that we ain't done going down yet (based on his older posts in other threads). In general, you can trade both sides of the market between S/R levels. AMT said he's not trading as actively now as he used to, and sticking with the major trend.
Market internals are note worthly today. The $BANK is trading into a possible resistance area....as it nears the 1483.00 area. The open is 1409.29 and the high of the day is 1413.04...meger high at best. The low of the day is 1376.80. The closing candle is a spinner. The fib retracement 0.0% (1344.45) area was taken out yesterday and today presented no real relevence as price moved further away from it. Price is above the 20 sma (1354.77) area as well with no ceiling in sight except the Feb.17 gap area (1483.00-1550.00).
http://stockcharts.com/h-sc/ui?s=$BANK&p=D&yr=0&mn=6&dy=0&id=p23129100789&a=143335942&listNum=1
http://stockcharts.com/h-sc/ui?s=$BANK&p=D&yr=0&mn=6&dy=0&id=p23129100789&a=143335942&listNum=1
Have held positions from late day Friday at 754.50 and 754.75.....targets have been hit at 747.00 this evening and the next targets are resting at 743.00 and then 738.50 to this pointQuote from AMT4SWA:
OK.....put on another level of positions at 754.75 just prior to the globex close. I have all my previous targets set the same for Sunday evenings action......have a great weekend all!
So, basically you had a big old short inventory zone (huge neg delta), and on friday although the delta was increasing and positive, it didn't have any odds of getting close to neutralize the old zone?. i.e.: Friday was just like throwing small rocks at a concrete wall to put it graphically. Right?
Nice trade, by the way.
JW
Hmm, OK I expected that response, so here's my follow up to my last question.
You can see over the multiday period illustrated on the chart the exact levels of net short zones from 9/15 thru 9/18. On 9/18 thru 9/19, price proceeded to significantly rally above all of these net short zones without having even come close to neutralizing each net short zone.
The following was posted by AMT on 2/26:
In my research, I've found the above to be true often but I've definitely found contradicting "signals"; Forgive my ignorance but how can such an egregious divergence as the one I'm showing have occurred? It can't be as simple as tracking CND for neutralization or net differences. The only thing I can figure is my indicator is grossly inaccurate, but I've double checked the logic... Anyway you can double check your levels to see what it looked like during this period?
Thanks again!!!
You can see over the multiday period illustrated on the chart the exact levels of net short zones from 9/15 thru 9/18. On 9/18 thru 9/19, price proceeded to significantly rally above all of these net short zones without having even come close to neutralizing each net short zone.
The following was posted by AMT on 2/26:
In my research, I've found the above to be true often but I've definitely found contradicting "signals"; Forgive my ignorance but how can such an egregious divergence as the one I'm showing have occurred? It can't be as simple as tracking CND for neutralization or net differences. The only thing I can figure is my indicator is grossly inaccurate, but I've double checked the logic... Anyway you can double check your levels to see what it looked like during this period?
Thanks again!!!