Thursday, January 17, 2013

Quick Review of Last Night's Wrap

This is from last night's market wrap... Seemingly pretty timely

"Tonight futures have lost a little ground, but nothing that seems noteworthy.  It wasn't, what was noteworthy was the 100 pip EUR/USD rally that drug futures higher.

I think the tight ranges of the last week (or even longer) looks exactly like what 3C has been telling us since before the move higher that we were expecting , started on 12/31/12-these flat ranges are most often associated with distribution or accumulation if it was after a downtrend. The market stays flat, middlemen fill and complete institutional orders in a stable VWAP environment and traders get bored and caught off guard before the market moves in a direction that gets traders' attention and calls them to action and then drops the floor out from under them-we've seen it too many times, but at this size it suggests quite a move to the downside....

Other than that, I would just continue to look at your shopping list, any quick spring cleaning you might have to do on a moment's notice and above all, be patient. I suspect AMZN will be a decent example of why we are patient."

This is not an analytical post, it's just to drive home the importance of not only understanding why the market behaves as it does, there is a method to the madness, but to use your edge over Wall Street which is patience.

 The SPY (whole market really) does just as mentioned last night, bores traders to death, then starts up with some action on a new breakout. Stay tuned.

Patience! I like AMZN short, that doesn't mean it's the best time as I posted yesterday, "I'd rather wait a bit more" and for good reason, this is where the update was posted (yellow) and this is where AMZN is now.

Opening Indications coming up


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