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!
Ok, I did say in the PROS and NUMBASH on page 2 that the mid pm would be high. First, thirty minutes bulls and bears canceled each other out. Then AM TURN early and weak 10:05 am. This gives you plenty of time to get to the MID AM HIGH. And it seals late and strong at about 11:50 am. Next, we are looking for a lunch low. Call it 12:20 pm early and weak. This is telling you selling pressure is unable to keep up the pressure and buying support is entering more quickly.
Now from 12:20 pm to 2:40 pm. That’s a lot of time. And a lot of pressure on the bulls. Notice twice they tried to rally it up but were unable to gain a following. The first was 12:50 pm. The second was 2:40 pm. Notice bulls just wetbeaked the price higher.
Now step back and notice from 12:20 pm to 12:50 is 30 minutes. Notice the price extent. From 1:30 pm to 2:40 pm is 70 minutes. Notice the price extent. It took twice as long as the previous rally to gain the same distance. The bulls are getting weak and have overextended themselves.
By 3:00 pm we already getting rounding tops and lower lows. On page two:
Honing: Spill up, AM LOW, MID AM HIGH,
lunch low, mid pm high, LAST HOUR LOW
Pull up a chart of the emini and you’ll see that’s how yesterday played out.
It’s not always that cut and dried. And it’s definitely not shooting fish in a barrel. But it does give you a guide as to how price behavior in the form of waves may play out. Now factor in that Composite Man we talked about last week. By my eye, it’s still weak-hand players waiting on the adults to show up. The needle has not been moved and I’m running out of news.
Looking Forward to February 17, 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.
4-month up trend. 8-week up trend. Inside week. The inverted V pattern failed at the highs. Can’t get out of a wet paper sack with the wind of Retail and PPI numbers to its sails. Last 4095.75. Settle 4099.75.
Bear Story: Had an opportunity to take price lower at yesterday’s CASH open. Failed. Gave bulls the soap. Let the bulls exhaust themselves the then sold the market off the last hour.
Bull Story: Failed to gain a following during the lunch slog leading into the last hour. Showed weakness as bulls failed to advance their troops. Price closed weak no bragging rights.
My Story: Retail and PPI numbers did not set the tone. Still seeing weaker hands as traders market. The last day of the cycle and the last day of the week. Overnight price is getting oversold. Will go long the market at/soon after if see buying support enter.
To learn more, subscribe to my AM TURN newsletter
Less than a cup of coffee. In your email inbox
before the opening bell.
