Can They Top Yesterday?
The Qs are doing their best to
top yesterday’s wild action with a
massive late-morning spike down and rebound in sympathy with
(
GM |
Quote |
Chart |
News |
PowerRating) accounting
rumors, after having nicely followed through on yesterday’s strong close off the
hourly strength divergence and three-minute trigger. If you watched the Island
book closely on the spike down — if your data feed didn’t jam — you would have
seen several blocks of tens of thousands of shares tick on the bid between
$25.00 and $25.20 with exits less than five minutes later north of $25.40. I
counted no less than six blocks of at least 25K each just between $25.15 and
$25.20 on the way back up and probably missed a bunch given the frantic pace.
There’s a big difference between bogus manipulative bids and real size, and QQQ
video and school
students should be able to tell the difference. This was real size with real
intent and real executions. Talk about making your quarterly keep in five
minutes. (As for me, I was unfortunately slow on the trigger on that one trying
to sort out the news … can I have a mulligan?)
So where does this all of craziness leave us? I frankly think there’s a shakeout
occurring of BOTH investors and traders. Call it survival of the fittest, as
market rhythms as dictated by current emotion and sentiment emotions are highly
schizophrenic. I can’t stress enough how important it is to stay alert as to the
market environment and setups because if you snooze, you’ll lose. Yesterday’s
late-day run was very tradable, and the hourly strength divergence provided an
exceptional heads-up as we awaited the key trend turn trigger, and the three-minute
cross was exactly what the doctor ordered. At these extreme levels, my personal
focus is much more on the long side in terms of reversals as is typically the
case during any longer-term market extremes.
Much work remains on the hourly chart in terms of challenging the daily
downtrend support, and afternoon response to the latest accounting shenanigans
may prove interesting.
12:15 P.M. ET
Good Trading!