Wednesday, March 6, 2013

We Should have our reversal any time now

After we get an upside reversal, things are going to most likely happen much more quickly. Yesterday's QQQ Puts are at over a 20% gain and they were opened right in this area-momentum, volatility, it's all important so some calls are probably going to be in to strong upside momentum and it will not feel natural or comfortable to enter trades like that, but this is where we get the best prices, the lowest risk and best probabilities.

Here are some signs the intraday upside reversal is near...
 The TICK chart went from a downtrend to just breaking that on the upside

 SPY 1 min intraday positive divergence

 This is not so much good news, the 5 min 50 ma has been broken, that's not good for the move started yesterday, the Trend Channel is broken as well, but we often get a lot of volatility above and below these as a change is occurring.



 ES 1 min intraday is positive, it looks like we should get a decent upside move, I'd guess above VWAP, the more convincing it is, the better it works.

 NQ has the same 1 min intraday positive, we should be set to go any time

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