Market Update

It looks like we should see some upside ignition soon, the averages are back in the positives after the op-ex pin, the hour has pretty much passed, most contracts are closed.

Remember that price action from late Friday rarely matters much going in to Monday, however 3C divergences from late Friday often pick up the next trading day (Monday0, so it would be my opinion that any upside move that may start today would likely carry in to Monday.

As you know, as I have posted, there's very serious deterioration going on in very long timeframes on an intraday basis, meaning what use to take weeks to move and then days is moving the equivalent amount intraday, it would be similar to us opening short term long trading positions while at the same time opening long term trending shorts. We would generally not do that unless there were specific signals that we were following, but we are not trading in blocks of 10k shares at a time to fill out 100k share orders, it's a different perspective that is alien to us because we don't have to worry about moving the market with our orders, we don't have to worry that we may only have a limited number of days to finish positioning a portfolio because of its size (in some cases the shares of their positions may exceed the total daily shares traded, so it's not possible to move in to a position in a day like we can which is one of greatest advantages over Wall St.), you have to understand the market from the perspective of those that move it.

So while some signals may seem contradictory, they really are not and the separation between a 3-5 min positive divergence (smart money long position for a short duration trade of a few days perhaps) and a 30-60 min leading negative divegrence (smart money building or taking apart a large position that may take a month or longer) are really not inconsistent, in fact the short term positive divegrence may in fact be needed to exit a large position (or short it) as they need demand and higher prices to exit as their orders are so large they will move the market by just placing them. 

The point once again is something that seems illogical to us is actually not only logical, but often necessary to large position holders, we just have trouble relating because we haven't had that experience and we often assume all experiences are similar to ours when in fact they are very different.

Ah, here we go, I see TICK is trending in an upchannel now and just busted through +1000.