poor risk: reward for longs here. Bias is that Distribution is complete. When other realize it prices will already have dropped 10%.
Volatility continues to be "crushed." Reviewing the VXV to VIX ratio we can see high probability shorts and pull-backs. As long as the ratio remains range bound the markets will remain within striking distance of "highs"
Short-term MARKDOWN is threatening larger timeframe DISTRIBUTION $114 TARGET for now
(1) Heavy selling on May 17, 2016 that failed to break support is a sign of buyers absorbing supply (2) Bearish close on May 19, 2016 below support with no follow through is another sign of "dip buyers."
Offers a reasonable entry off the lower trend line of the bullish ascending channel. Showing signs of accumulation; however, I also believe we need to confirm that supply is in strong hands. This could result in a volatile test support near $8 (16%). $8 is my ideal entry as I would be buying support and fear.
BABA has clearly marked the start of a Distributive cycle; however, selling pressure is contracting. We will likely see prices retest 'supply.' Could see an 8% rally before resuming any trading lower
Target is trading below value as we see rotation of the point of control lower; however, bulls have clearly established support noted on volume profile. Looks like a good long and short swing.
I've been following GDX for a while. Bulls are trying to absorb supply again. If so it is very likely going to test longer term resistance likely established in 2014. I remain bullish above $23 buck
If BEARS are unable to break resistance prices will likely trade higher into the upper trend line of the descending channel before trading lower as DISTRIBUTION continues. There is no sign of a selling climax so my bias is that it does continue lower
Natty's bullish close above resistance offers traders well defined risk. It looks like a reasonable 1:10 risk/reward entry here with a lower volume area. The ceiling with the "value area" appears to leave plenty of room to allow prices to continue into resistance. Volume looks good; however, cumulative buying looks weak. If it remains so prices will likely...
Markets are under longer timeframe accumulation. Saw some smaller distribution overnight which should mark the final entry before trading higher to $208. Currently finding support at 50% Fibonacci retracement. BULL thesis intact above $2055.50
IBB is starting to show signs of accumulation. Missed one of my favorite set-ups as well.
The percent of stocks trading above their 20 day simple moving averages is making low highs relative to the new highs are markets are achieving (BEARISH DIVERGENCE)
Goldman continues to show signs of distribution an addition to trading with a descending channel. Prices recently created a spring that is capable of pushing prices into "overbought" ranges relative to the trading channel. If buying volume remains contracted into resistance it is likely going to provide a low risk short Good Luck!
A brief review of recent lows reveals strong clues that selling demand was losing momentum. Buying volume present on the upswings continues to overshadow any selling volume within the ascending channel. The market remains in "strong hands." I speculate that a $208 will be tested.
S&P saw a slight pullback from as buying as demand contracted. In the process cumulative selling gained some momentum; however, prices managed to close higher. This indicates that the market appears to be in "strong hands." Note prices are still finding support along the "mean" of Andrew's Pitchfork. The bullish trend remains intact. I speculate there will be...
What happens to $SPY when the VXV:VIX ratio hits 1.24?