Wednesday, September 18, 2013

Retail BTD?

If anyone has a Twitter trend in sentiment, please send it in, as long as it is dominant. Some initial 1 min signals on the slight declines so far look like there's "Buying the Dip" action which is the motto of retail "when" they are bullish, I haven't seen them embrace "Sell the Rip" yet so while they still will turn bearish with the wind blowing, they will not sell the rip, they just switch back from BEARISH as can be to bullish as can be, they have no opinion beyond what price is doing at the moment, as Sam said yesterday, that must be a stressful way to trade.

Here's an example of why I suspect, retail is buying the dip, which could provide some useful tactical entries if they do and price rises and locals step in to sell in to that rise, even if it remains range bound at yesterday's highs.

The IWM
This is only 1 min, the TICK data is worse and volume appalling so I suspect this is retail.

The IWM is just an example, this same trait is seen in all of the major averages.

The idea is to look for retail to buy the dip (if we can get a sentiment update as long as it is dominant from ST or Twitter, that would be helpful), price to rise, it doesn't matter how much and then to see if there is clear and heavy distribution, that would be a tell and that would be something worth considering for a trade. If the action were really extreme in 3C, then we might have a leak.

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