Friday’s session was all about cleaning up structure from Thursday's trend day. The profile displayed a b-shape, signaling long liquidation. I'm observing the main distribution of the attached 11 day volume profile.
Basically means that signs of stronger sellers were absent. A failed breakout from the prior multi-day balance should have triggered a much better downward move. The fact that this did not happen is casting doubt on the strength of the sellers.
I have read your stuff on twitter but never checked out the substack before. Great read. I found the 'mechanical' selling to be a fitting term for price action I haven't categorized before but its an apt description.
So the MGI I got is, judging by the ON action, when A in RTH couldnt take out ONL, a ON inventory correction should be expected but market is forming a poor high instead, meaning more to sell.
"The selling activity appeared to be mechanical"
-> What does this mean: "Trading bot algorithm?"
Basically means that signs of stronger sellers were absent. A failed breakout from the prior multi-day balance should have triggered a much better downward move. The fact that this did not happen is casting doubt on the strength of the sellers.
Wondering same.
I have read your stuff on twitter but never checked out the substack before. Great read. I found the 'mechanical' selling to be a fitting term for price action I haven't categorized before but its an apt description.
So the MGI I got is, judging by the ON action, when A in RTH couldnt take out ONL, a ON inventory correction should be expected but market is forming a poor high instead, meaning more to sell.
Same script playing out today, no strong sell at lows.
Great analysis. Helping me to see mine is in line. Thanks for all you do Smashelito!
I like the VIX context additions. 🙏
Thanks! You notes have really helped me a lot !!
First time I noticed your signature at the bottom. Cool. You are the best, Smashelito.
Are your vix levels correct? I thought at the high you want the vix to be higher and lower at the opposite end ? Thanks
Yes, the VIX levels are correct. If the last upside target is reached (4208), you want a lower VIX to confirm the strength and vice versa.