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!
The day opened gap down. We have two options. Gap and Go or Gap and Crap. That was WB’s way of looking at it. Price traded in a balance for about 55 minutes. At 10:20 am you can see a down move to print the low of day at 11:00 am. This is followed by a 10-minute rally that recovers just shy of half of the decline.
Next, a 40-minute low that springs the low of day. And a 30-minute rally. This rally lasts 20 minutes longer than the previous rally and its extent is greater than the previous rally. If you are looking to get long, the next reaction will give they the go or no-go green light.
A 40-minute decline lasts the same as the previous decline but it’s extent is just half of the previous decline. If you are looking for confirmation from the market, this is your wake-up call. A 110-minute rally follows and then price starts to get checked at the day’s high.
Looking Forward January 20, 2023
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.
I’ve looked across all 30 DOW securities and I don’t really see any reason price recovered from the lows yesterday. Now the futures saw a bid from 1/10 say around 11:30 am. Then perhaps it was just a natural big even level 3900 handle.
As I write price is trading 20 handles higher in a tighter trading range around 3922 and change. I would say that price tries to recover at least half of the previous day’s reaction.