Okay, I'm still trying to get my footing here with this new format. I'm not sure where I'm going yet. We'll see...

Now, watch the behavior at this two ticks over spot. I'm not saying it will likely sell, I'm saying watch for a clue to see what it does.

Now, I can't see a sell into the close at this point, but it is cool to note how it did this 1.128 stop gun here, and is now very vulnerable to such a sell. But 'Bo-ner' is yapping now about avoiding the fiscal cliff, so that can't be anything but good for the market.

But, I could see a very skilled, very good 'daytrader' (intraday swing trader by my terminology) having taken that first shot, took it off, and then having taken another shot off the stop gun. 'In case' trades. But, mostly it's just chop, the moves have been made, way over 60 points of ES movement, and trying to game this chop is low probability. But, I'm just saying what I think here regardless.

Let's finish the day with a video. I always try to relate trading concepts, principals, reads, comments, etc. to videos, music, movies, etc. It's not only a way to use an analogy to teach a concept, but I use it to keep the concept firmly in my mind. I sing it or recite it, and I remember core principals. I use it here as a teaching technique hoping it will help the readers to remember core things, as it has helped me.



"That's how you do it, son."

Originally posted by jimkane

But, I could see a very skilled, very good 'daytrader' (intraday swing trader by my terminology) having taken that first shot, took it off, and then having taken another shot off the stop gun. 'In case' trades...

Is it clear how many times I said this is lower probability? How I said it probably won't happen? How I called these shots 'in case' trades? How I emphasized extreme skill and nimbleness for this approach? Notice how they gunned the stops first, how they shook it violently before they let it go.

And lastly, how did I get that post put together, video and all, so quickly if I was busy paying attention to the sell? That's what should really bake your noodle (a saying from 'The Oracle' in The Matrix). Could it be I prepared that post ahead of time 'in case'? Hmmmm.

And it hits... drum roll... 89.

Uno, dos, tres, cuatro, cinco, cinco, seis...

Originally posted by jimkane

Otherwise, I'll be watching 92 and 89 areas...

And into the lasts seconds of the close it drops to 87.75 and then snaps up. It seems unlikely it is done. Recall what I mentioned about monster days closing near the HOD or LOD. This just got within about two ticks of the GZ, and recall I don't look at exact levels, I look at areas. This was what I thought was realistic if it sold.

Originally posted by jimkane

The GZ has some stuff, so let's say 86 is realistic (not that new LOD)...

And what happened? Once again they made me think it was ready to explode up, and they pop it four ticks over, and then it dumps. I haven't got this refined yet, but I think there really is something to it.

Originally posted by jimkane

It does 'look' like they want to run it into the close.

Originally posted by jimkane

Not in the way that they are trying to do the opposite, it just seems like they are going to pop it.

And I'll finish with a follow up to the chart I posted earlier. It's the same chart, dropped down to a 15-min timeframe, with a natural set added on, and some additional notes. This sums up my posts.





Chart created on QCharts, courtesy eSignal

CDE got hit a little bit this week.