Disclaimer: For educational use only. I’m not dispensing financial advice. We are having an intellectual conversation (you and I) on the topic of trading the Emin futures using the Lens of Wyckoff Principles and the Eyes of WB’s clock. The clock that controls all turns intraday, every day!
They say that Elon is getting a margin call. Wow! Who would have thought? The leader in self-driving cars and brain implants is not immune to a margin call. I looked it up he’s the richest man on the planet. And he bought Twitter with Wall Street’s money and now, they want it back!
What can I say? The way the market closed Wednesday and traded over Globex it was screaming to go up. At the open, just a 5-minute rebalance from overnight, and then it was off to races! A strong move up for 10 minutes and then a 10-minute resting spell. If you wanted to get long that would have been your first opportunity.
Then a 65-minute up move. This is followed by a 15-minute down move. Price gives back just a little bit more in time and distance than the previous down move. A hard move up for 40 minutes. This falls short 20 minutes and in points gains than the previous up move.
This is telling you the short-term bulls are starting to get themselves a bit too long and are unable to keep up the pace of the former rally.
A down move during the SLOG for 70 minutes and then a 30-minute up move wet beaks the current high and set’s a new high of day. If you are looking to exit your long position, this would be the place.
A down move for 65 minutes and then a 30-minute up move that recovers just half of the previous reaction. This is telling you bulls are unable to gain a following. Price has reached its limit. At least for the day.
Looking at the SPY you can see a lot of volume coming out in the last 10 minutes. Perhaps, the astute trader is taking advantage of the year’s end and is looking to start exiting just a little at the top before the bigger boys get back in town. I hear they are going to be dressed to kill Down at Dino’s Bar’n’Grill…
Looking Forward December 30, 2022
Due to recent changes in market behavior I’ve decided to change my focus to Time based trading. This allows you to benefit from the flow of the arrow of time and not fight against the algos in the nanosecond.
It should be no surprise as I write this price has retreated from the highs and now trading 3857 handle. The Short Term Traders have gotten the market too long. And It’s only natural for it to pull back. GLOBEX has traded a 20-handle range on about 68,000 lots.
We’ve retraced about half of CASH range and found a bid just at the 10:00 am low. Chicago PMI is at 9:45 am est and next week is a shortened holding week.
Bigger traders will be back at their desks next week so we should get a better look at how the longer-term trader is positioned.
Today, if GLOBEX does not take it all the way back we could see a testing of the highs.
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