Here is today's day session in the e-minis. I have drawn in blue the lower edge of the rectangle representing equality with Friday's 24 hour range. I went long one unit at 708.00 (red arrow) because the market hit the blue line while showing climactic 5 minute volume (green arrows) and then stabilized for about 30 minutes. After a volume climax the market sometimes runs right away in the opposite direction, but more frequently moves past the climactic price on lower volume before it rallies. So far this is what we have have seen.I think the e-minis are putting in the day's low here, but if volume should build on the downside below 700 I will get out of my position.
3 comments:
Hello Carl,
Murphy's Law really says the fabled moment of capitulation will probably be the moment that yours truly turns into a massive, raging bear. If so, maybe I should hurry up and get it over with. I have been joking that the Dow will probably hit rock bottom at about 3600 on or around September 20 of this year. The reason? That'll be the 10th anniversary of the publication of "Dow 36,000." Hey, the market has to rock bottom somewhere. No one has any better idea.
cheers
Susn
Carl,
As always, thanks for sharing your thinking. When the market moves down on higher volume, sometimes this would qualify as a supply shock. What makes this different, when it touched the blue line from above on higher volume?
I have been thinking end of September for some time. A DOW below 4000 is very feasible with all that is happening. It promises to be an interesting spring period this year indeed.
sandy a.
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