GOOG Charts

This post is in reference to the afternoon GOOG April 13 $800 Calls, even though there's a GOOG April (monthly) Put in place. First of all I wanted the week before, expiration the 5th, but something went wrong with one of the sliders.

I see this as an Ultra-short term position, most likely closing tomorrow like we did Tuesday with SPY Calls.

I'm just kind of guessing here, but one reason I can think of to torture every asset possible to try to hold the market up or move to the new high (which it almost seems as if they don't want to do, or at least not yet), would be the end of quarter which for all intents and purposes is tomorrow as the market is closed Friday and Monday is April. As far as trades that count on Q2's prospectus, those would have had to be in days ago because of the T+3 settlement rule (Trade plus 3 days to settle) so window dressing in the sense of a fund's holdings doesn't seem to be the issue, but as they are looking for a flow of new money in to all kinds of assets whether they be 401k, IRAs, Mutual Funds, Hedge Funds, CDs or other derivatives linked to the market, there would be no better time to let that sink in than the lat day of the quarter with a 3 day weekend and news screaming about the Dow and S&P at new all time highs.

What happens? The Greed effect take over, the "I missed all of this when I was only getting a fraction of a percent on my CDs, I'm getting in the market" and that creates a feeding frenzy for Wall Street, except they are the sharks as you'd expect and nothing good is going to come from making a decision to enter the market on the greed effect of propaganda, but to me, that's the only reason I can see that this market has been within fractions of a percent and not been able to cross the line.

So if this has any truth to it, the GOOG and AAPLs of the market will see a nice move, however I am not looking at the charts and trying to make them fit the theory, I'm looking at the charts and trying to find a theory that fits them.

Here are the GOOG charts, but I'm not drawing on them, I'm going to let you look at how 3C moves where it should (before reversals) and moves in line or confirmation with price and to the right you should be able to see on your own where something is standing out.

The other comment is that this is not long term accumulation, it usually takes a little while before accumulation signals show up on a 30 min chart, it's a process, but in this case it's very immediate which would mean that the buying would have been very sudden and very large for a normal day, but not large enough that it threatens the longer term puts because you simply can't accumulate that much in a day without sending price rocketing higher. It looks to me like a large trading position was picked up and that it will be dumped pretty fast as well.

Enjoy...

 2 min chart-again the longer view so you can see how 3C moves with price and where something is out of place to the far right of the chart, where we live.

 Close up of 2 min chart

 10 min chart

 close up of 10 min chart

 15 min chart

 close up of 15 min chart

 This is the one that did it for me-30 min chart

Close up of 30 min chart.

Now as I said before, a divergence that big in 1 day means there was a lot o activity and there was a flat range for it to happen in. The thing is, the longer the timeframe, the larger the underlying flows of money we are looking at so a 10 min chart is way more important than a 2 min chart, a 30 min chart in a day is something spectacular. I never skip over signals this strong unless I can explain it away.