Tuesday, October 11, 2011

A New Tool In Our Arsenal?

This may be one of the most exciting developments in a long time for 3C and proprietary indicators. One of our members who has contributed enormously to this site and I are collaborating on some early tests and experiments using 3C in not only the extended hours markets, but in the round the clock futures market as well. As I have said many times, 3C has a long learning curve and this new environment will probably have somewhat of an extended learning curve as well as volume in extended hours trading is much thinner and the futures market is something altogether different. However, this may give us insight, especially in the futures market, that shows us a whole other side of Wall Street. Manipulation of each of these markets can be extreme so, the longer timeframes seem to be the best bet as they reveal more of the trend and less of the manipulations of these markets.

So far tonight futures, unlike last night, are down across the board, but only by a small amount (about .25%), which may be a holding pattern waiting for the Slovakian decision. However there are some interesting longer term signals as well. I'll start publishing these charts when a few scaling kinks are worked out and we get a feel for these markets.

As mentioned, after-hours held pretty steady, futures are pretty steady, with a slight negative bias, the Euro is literally unchanged 9 hours after the close of trade after a 350 pip rally, the largest gain since March of 2009. The market is clearly in a holding pattern awaiting news from Slovakia.

However, the charts below saw some large scale damage today, much of it as the day progressed and toward the last hour.

 DIA 5 min

 DIA 10 min

 DIA 15 min

 DIA 60 min

 IWM 15 min

 IWM 30 min

 QQQ 5 min

 QQQ 10 min

 QQQ 15 min

 QQQ 30 min

 SPY 1 min

 SPY 2 min

SPY 5 min

There's going to be a short squeeze and Slovakia is likely to determine whether it is in the market or the Euro.

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