Tuesday, January 8, 2013

Quick Update

The TICK is getting very negative, very quick. The market averages are for the most part still doing that 1 min either in line or negative with the longer charts like 5 min positive like the ES example from earlier, here's a DIA example.


DIA 1 min in line with price, but the more important development is below.

The 5 min chart is where intraday trade is distinguished from institutional activity, this, like ES is the first really nice 5 min positive divergence in several days so the larger underlying tone is still holding up.

"IF" I absolutely had to play AA, I might take a long (equity) and sell in to the first bit of strength whether that be after hours or tomorrow morning, if it is strong, I'd be taking profits. That's the general rule or tone-any double digit gains in after hours I'd certainly take. I'd want to see how the market reacted most likely before I just sold it, but again, double digit, I'd take it and it is of course speculative.

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