Here is a 30 minute bar chart of day session e-mini trading over the past two weeks.Some of you are wondering whether this morning's action is a supply shock.
I don't think so. My reason is a simple one. Volume today on this drop has been lower than at any time during the past six days, and volume on those days was none too high to begin with.
So I don't think the reaction from the 876 level has changed the direction of the trend which I think turned upward from 797 on January 20. This is not a supply shock.
5 comments:
Hi Carl,
We must be getting close to a bottom as these so-called analysts are starting to put in downgrades, duh, to good companies. Hmmm, bad economy and companies are not doing so well, so lets downgrade 'em. Waiting impatiently on the sidelines ready to jump on some CHEAP (already) stocks. Good luck trading to you.
Current stock valuations are not considered cheap, with the S&P trading at 10.5x est earnings. Historically stocks have tended to trough at roughly 7x earnings. Stocks aren't cheap relative to historical price to earnings multiples. Most important equities are unlikely to start their recovery until the credit markets recover given the rising risk of deflation, deleveraging and the economic uncertainty.
Hi Carl, I have be reading your blog for almost 2 years. Thanks so much for sharing your knowledge. Can you tell me what chart service you are using for the above 30 minute es chart posted above? Thanks very much. Best Wishes, Bob
The intraday charts you have been seeing are generated by Interactive Brokers' "Trader Workstation" application.
Thanks Carl.
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