Friday, November 11, 2016

Election Plus 3 Days


A few days ago, I commented on likely spots on where price would hunker in. The elections came this past week . The Big Money operators were able to move to markets some incredible distance, yet wind up essentially where it started...

By making observations on price action, we are becoming better at identifying price targets.


Friday's MP Action

  • NQ dutifully set about filling in the LVA swamp today…

  • ES set about hovering at POC #3


MP Action for both:  Inside days…  (Research three point triangle breakout)




Friday Price Action
  • Inside days for ES & NQ
  • NQ settle 4742, POC, globex POC very  close to  and prior day POC & settle
  • ES traded around Settle (-2 days) and at the 1 year POC #3
  • ALSO SEE
  • -- MINIMAL NQ OBV IMPROVEMENT
  • -- NET ZERO ES OBV MOVEMENT

  • ES HAS PUT IN A TWO DAY DOUBLE BOTTOM WITH A DESCENDING UPPER TREND LINE
  • WATCH FOR BREAK OUT SHORT




Volume Action
  • EOD volume lower than Day -1 & Day -2
  • Yet very good volume to wrap up the week
  • It'll be interesting to see next Tuesday's COT report.


SECTOR ACTION
  • XLF XLI & XLY LEAD THE DAY
  • XLP, XLV & XLK LAGGED THE DAY




PRIOR DAY TRADE REVIEW:
-I left the Bot running in SIM Mode
-Moves appears fairly honest
-Congested FT floor/ceiling trading possible with help from robot



Summary: By moving during the overnight, Big Money traders were able to move the market considerably during the Election. Yet price essentially went nowhere - Perhaps not good for long term investors but yet presented intraday traders several good opportunities.

To be continued...