8/3/15 Recap and prep (for 8/4). Higher volume and lower value implies that the market is very weak. Even with the weakness the mkt was able to retrace more than half that into the close. 1T.F. has ceased on the daily chart. On the same timeframe, we are now out of balance to the downside. In the short term, the anomalies from 7/28 may now become the focus for day timeframe traders. Last weeks low is also a poor low at 2056.5. This could also be a destination trade should the mkt continue its weakness going fwd. Something Im going to be eyeballing this week is on the weekly chart. Ive drawn a level at 2073.50. It's about the center of this 20+ week balancing bracket and was a double top on the last week of '14 and first week of '15. May not mean anything. But the evidence on the weekly chart shows that the mkt keeps being drawn to and from this level. So Im keeping this in my mind. I also have drawn a trend line on the weekly chart. Im also keeping this in my mind as well. Should both of these levels be breached, and prices are accepted below these levels, taking out last weeks low could be a real possibility. This mkt continues to exhibit very low confidence. The ES today was heavily influenced by the other majors (YM, NQ, TF).
Market Profile - Daily updates
- Thread starter CJS
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8/4/15 Morning Update. O/N volume is very light. 127K at 0540am PST. Adjust expectations. O/N trade is within yesterdays range, and inventory is relatively balanced - somewhat short. Balance Rules apply. 1) Stay within balance and rotate. 2) look above or below and accelerate. 3) look above or below and fail. A couple of dest. trades should we find acceptance outside of balance could be (upside) the prominent TPO POC from 7/31 at 2105.5, and (downside) the center of the 20+wk balance we have been in at 2073.5. O/N high is 2093.5 and the low is 2084.25.
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8/4/15 Recap and prep (for 8/5). A day of balance. Within this balance the attempted direction being down and lower volume implies balance as well as a strengthening mkt. Sellers were taking advantage of every attempted rally. Today's TPO POC is very prominent and virtually in the center of today's range. There are several data points that could support a mkt that is poised to go in either direction. I will leave todays recap at that. Until this mkt shows some form of directional performance and confidence, trying form a bias in either direction may cause cognitive dissonance. Speaking of confidence, in a low confidence environment, the mkt can easily be controlled by day timeframe traders. What Ive learned from Jim Dalton's classes is that these are the most emotional type of traders. The usual day timeframe levels (O/N high/low, prior pit session high/low, etc..), but also trend lines may come into the game. Ive drawn two very short term trend lines on a daily pit session template chart that you may want to reference. At any rate, let the mkt reveal its intentions through market generated information. Tomorrow has several potential market moving news events. See them here: http://www.forexfactory.com/
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8/5/15 Morning Update. Volume is moderate 173K. O/N inventory is 100% long, and as of now (0540am PST) there is a 7 handle gap up. From Mind Over Markets: "gaps are measured from previous pit session high or low, not the settle."
Gap rules apply.
1. Go with all gaps that don’t fill right away. That means if it doesn’t back off early it’s probably not going to and is going higher.
2. Large gaps (this is not really one) may not fill or may fill only partially on the first day. Pay attention to “halfback” of the gap distance. Currently the 2099 area.
3. If the gap fills and value cannot get to at least overlapping, there will probably be a late day rally.
There is still news that has to come later that potentially can move the market. Be mindful of them.
Gap rules apply.
1. Go with all gaps that don’t fill right away. That means if it doesn’t back off early it’s probably not going to and is going higher.
2. Large gaps (this is not really one) may not fill or may fill only partially on the first day. Pay attention to “halfback” of the gap distance. Currently the 2099 area.
3. If the gap fills and value cannot get to at least overlapping, there will probably be a late day rally.
There is still news that has to come later that potentially can move the market. Be mindful of them.
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8/5/15 Recap and prep (for 8/6). Slightly higher volume today. Attempted direction was up from the open. But there were sellers waiting around the level of the very prominent TPO POC from 7/31 at 2105.5. Traders had last weeks high at 2108.5 in their sights and that's what my mindset was as well since the attempt to fill the gap failed. But sellers were able to drive mkt down for the remainder of the day. One thing I want to point out is regarding the GAP rules. Rule 3 states: "If the gap fills and value cannot get to at least overlapping, there will probably be a late day rally." The gap was filled in F period, but value was no where close to overlapping. I was prepared for a late day rally, waiting patiently. In J period, we started to get that rally as we started to 1T.F. higher, above the I period high. This was one of the trades I was long in. However, once K period opened up, value migrated to overlapping. This alerted me to the fact that the odds of upside continuation had just been lowered substantially. I took the trade off but atleast was able to grab 1handle of profit. The point is, it's a great help to keep these market profile nuances in your mind. They work. Once price got to half back (2098.75), the mkt sold off into the close. Short lived late day rally.
On a daily level we are in a 6 day balance bracket. Even with todays action, we are now 1.T.F higher again on a daily chart.
Long winded recap today, apologies.
Ive included a birds eye view of the daily profiles today. On this figure I have all of my levels marked that Im prepared to monitor price action around these levels.
I also post these recaps on my FB page: https://www.facebook.com/pages/Döbler-Derivatives-LLC/294362757431510?ref=hl
On a daily level we are in a 6 day balance bracket. Even with todays action, we are now 1.T.F higher again on a daily chart.
Long winded recap today, apologies.
Ive included a birds eye view of the daily profiles today. On this figure I have all of my levels marked that Im prepared to monitor price action around these levels.
I also post these recaps on my FB page: https://www.facebook.com/pages/Döbler-Derivatives-LLC/294362757431510?ref=hl
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8/6/15 Morning Update. 0545am PST. Volume very light: 100K. O/N inventory is balanced. Mkt in balance. Balance rules apply.
1) Remain within balance.
2) Look above or below and fail; on a failure the opposite extreme becomes the destination trade.
3) Look above or below balance and accelerate.
Yesterday's recap pointed out that on a daily basis we are in a 6 day balancing bracket as well. A breakout that accelerates would target these extremes (2108.5; also a weekly high. 2080)
O/N High is 2099.25
O/N Low is 2091
1) Remain within balance.
2) Look above or below and fail; on a failure the opposite extreme becomes the destination trade.
3) Look above or below balance and accelerate.
Yesterday's recap pointed out that on a daily basis we are in a 6 day balancing bracket as well. A breakout that accelerates would target these extremes (2108.5; also a weekly high. 2080)
O/N High is 2099.25
O/N Low is 2091
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8/6/15 Recap and prep (for 8/7). Higher volume and lower value indicates a very weak market. Quite honestly I am having a hard time deciphering today's profile. At first glance I want to say long liquidation. But we've had several days of balance. This piece of data doesn't support long liquidation. Substantial volume and extended range could be an indication of new selling vs. long liquidation. However, the profile lacks symmetry which is often how the profile appears if longer term participants were in control. Nonetheless, we are out of balance to the downside. A late day rally made an attempt to get back into the 6 day balance bracket but failed to find acceptance. However the mkt settled just below the balance low (balance low is 2080), at 2079.75
I've left the lower balance bracket level drawn on the profile img for reference. Also take a gander at the daily chart posted. Interesting how the low of the day is virtually the uptrend line drawn. Ive looked at the 200 day MA too, it and the trendline are just about the same level.
My trading today started off with a profit on the 1st trade. But trying to catch the low early came back to me in the form of hell in a hand basket. I stepped away at this point. I couldnt get my head around the facts that were right in front of me. Best thing to do when this happens is to sit on hands.
A couple things to keep in mind going into tomorrow;
1) If in fact today was new money selling (institutional), I think we will see more weakness. If the 200 day and the trendline are breached all sorts of participants may pile on.
2) Today's auction has an excess low. This typically marks the end of an auction. Although the next auction may still be to the downside. But the fact that we have an excess low today is something to put in the back of your mind.
3) If today was day and shorterm participants liquidating or not, there are alot of shorts in the market.
Summary, obviously the mkt could go in one of two ways - balance. But if there is a short covering rally, it could be a mirror of today at least in the am session.
Big news events pre-mkt tomorrow. Lots of stuff to be very alert about. You can find news events at Forex Factory website.
I hope this helps with your preparation.
I've left the lower balance bracket level drawn on the profile img for reference. Also take a gander at the daily chart posted. Interesting how the low of the day is virtually the uptrend line drawn. Ive looked at the 200 day MA too, it and the trendline are just about the same level.
My trading today started off with a profit on the 1st trade. But trying to catch the low early came back to me in the form of hell in a hand basket. I stepped away at this point. I couldnt get my head around the facts that were right in front of me. Best thing to do when this happens is to sit on hands.
A couple things to keep in mind going into tomorrow;
1) If in fact today was new money selling (institutional), I think we will see more weakness. If the 200 day and the trendline are breached all sorts of participants may pile on.
2) Today's auction has an excess low. This typically marks the end of an auction. Although the next auction may still be to the downside. But the fact that we have an excess low today is something to put in the back of your mind.
3) If today was day and shorterm participants liquidating or not, there are alot of shorts in the market.
Summary, obviously the mkt could go in one of two ways - balance. But if there is a short covering rally, it could be a mirror of today at least in the am session.
Big news events pre-mkt tomorrow. Lots of stuff to be very alert about. You can find news events at Forex Factory website.
I hope this helps with your preparation.
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8/7/15 Morning Update. 0545am PST. Moderate volume 177K. As of now the mkt would be opening in balance. O/N inventory is short but not 100%. Balance rules apply today. Review yesterday mornings post for balance rules.
UPDATE: removed the bearish reaction comment about the news release, of course after the post, the mkt turned around and created a new O/N high. Sorry about that.
UPDATE: removed the bearish reaction comment about the news release, of course after the post, the mkt turned around and created a new O/N high. Sorry about that.
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8/7/15 Recap and prep (for 8/10). Lower volume w overlapping to lower value implies a moderately weak mkt. A late day short covering rally brought the settle (2073.75) almost to the open (2075.50). Which, is virtually the center of the range of the 25 week balance bracket. 3 ticks of excess on the low today. This excess low shows well on the daily chart. The low of the day coincides for all intent, exactly with the intermediate term uptrend on the weekly chart. Last week was an inside week as well. Still 1T.F. lower on a weekly and daily basis, and Friday left a very prominent TPO POC at 2065. There is still a poor low left from the previous week (7/27). These could be targets should the mkt trade to the downside. Last week was an inside week which is another form of balance. This market has very low confidence. Will provide an update pre-mkt.
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8/10/15 Morning Update. Moderate volume as of 0545am PST; 168K. O/N inventory is 100% long, and at this time there is an 11 handle gap up. Gap rules apply:
1. Go with all gaps that don’t fill right away. That means if it doesn’t back off early it’s probably not going to and is going higher.
2. Large gaps may not fill or may fill only partially on the first day. Pay attention to halfback of the gap distance (2080)
3. If the gap fills and value cannot get to at least overlapping, there will probably be a late day rally.
O/N high is 2088.5 - but with the mkt being bid all night this likely will not hold long.
O/N low is 2071.75
Gaps are measured from the prior pit session high or low, not the settle.
1. Go with all gaps that don’t fill right away. That means if it doesn’t back off early it’s probably not going to and is going higher.
2. Large gaps may not fill or may fill only partially on the first day. Pay attention to halfback of the gap distance (2080)
3. If the gap fills and value cannot get to at least overlapping, there will probably be a late day rally.
O/N high is 2088.5 - but with the mkt being bid all night this likely will not hold long.
O/N low is 2071.75
Gaps are measured from the prior pit session high or low, not the settle.
