Weird picture, usually volume occurs at turning points
- Thread starter IronFist
- Start date
Is this Chicago time? On my chart the inflection point happens at 4:35pm (after hours) hence the lack of volume.
When was this screenshot taken?
And look, volume is elusive. Makers aren’t going to push markets in opposite directions at peaks and troughs the minute a huge order comes in.
the way I look at the above screenshot is huge vol comes in on the downtrend...this vol is action, whoever is buying and selling likes this price. Then all of a sudden GME drifts below $120 and poof, no volume = no interest. Makers test the auction until selling drys up at the $112 low, which gives the green light to facilitate/oscillate price back to the price where volume was highest during the prior sell off ($130), and price goes directly back to that same price.
it’s just one big oscillation. Ebb and flow. This is why markets are always analogous to water, oceans, any body of water. Volume gives clues, but it’s almost never textbook or trading would be easy.
And look, volume is elusive. Makers aren’t going to push markets in opposite directions at peaks and troughs the minute a huge order comes in.
the way I look at the above screenshot is huge vol comes in on the downtrend...this vol is action, whoever is buying and selling likes this price. Then all of a sudden GME drifts below $120 and poof, no volume = no interest. Makers test the auction until selling drys up at the $112 low, which gives the green light to facilitate/oscillate price back to the price where volume was highest during the prior sell off ($130), and price goes directly back to that same price.
it’s just one big oscillation. Ebb and flow. This is why markets are always analogous to water, oceans, any body of water. Volume gives clues, but it’s almost never textbook or trading would be easy.
You're not taking into account the CBOE's synthetic "securities" at various strikes and expirations vis-a-vis the NYSE and inventory merchandising. It all comes out when in the moneys are assigned. Regardless, the stock is in la la land.
Somebody or somebodies also bought 4,000 of the 130 puts today. Trying to find the time and sales but if market makers sold those they have to sell stock to hedge so that's 4 million shares hitting the market on the short side that could drive the price down quite a bit as it looks like it was 1/6 of the volume traded. Knock of some sell stops on the way and then the bounce up. Just a theory.
correction the hedge would correspond to the delta. so it wouldn't be one for one. my mistake. but still a trade this volume is going to trigger selling.
Just a correction, 4,000 puts are equivalent to 400k shares not 4m.
you're right i shouldn't do math after 10 pm
