Volume Dries Up
Bears Can't Get the "Big One"
Traders,
A wonderful overnight drop led to some profit taking from Fridays close by us in AT and started the week off right. I always like to have a good start as you’re not digging yourself out of a hole. We were able to sell into 4035, bounce, but what happened next was a little disturbing for the untrained eye. We lost 4035 and went to test 4014. Once that test was around the market decided that 4000 was a much better place and sold down into the 3992 handle where it started to perk up as intraday shorts took their profits and created a new poc.
That being said most names took a big hit with many getting short into AAPL 0.00%↑ in the first hour. Here is what that looked like on the 15m chart. Usually when a weighted name like AAPL runs that hard that fast at the open of a week, it usually means short it.
That is a classic intraday short to find new buyers. And they did around the $146 mark with volume as you can see from the SVPHD.
Today’s version will be a little short as I have another engagement I’m squeezing in the next 20 minutes so lets get to it and while we’re at it this is free for all subscribers today. A thank you for being a part of the community. Please share this with like minded traders and invite them to the community.
Tomorrow’s Auction
I am personally bag holding some longs but I’m not that unconfident in them. I bought them for Wednesday thinking this whole area 3992-4014 is a buy area for new longs as this controlled selling told me to BTFD. I did that and so far GLOBEX looks to want to reward us.
I will use 3992 as my pivot tomorrow. An open over 3992 should find more buyers and lead us to 4014, 4035, 4051. I would expect with no news that the market wants to go run some of these new found stops. I just hope we don’t open up at 4035 as that wouldn’t leave much meat on the bone unless we get a morning dip into 4014. I will be a buyer on all dips tomorrow above 3992. Under 3992 I will be a bear to go test 3982, 3964, and 3937. I don’t think we print 3937 as that would signal an open to 3825 before Christmas. A daily close back over 4035 and I am thinking we open the door back to 4175 and 4200. I will become a bear there for a trip back to 3825. That may not be until the new, so we will play it day-by-day and week-by-week until we start seeing massive amounts of distribution or accumulation.
Good Luck,
DP