The daily imbalance phase that started yesterday continued in a downward trajectory today. It’s worth noting that this phase of imbalance has now reached an area of prior balance.
I would disagree that the few hundred lots at the lows were "trapped sellers." Given that it was clearly stop orders triggering (because it was so fast that none traded at the offer), it is most likely the last of the early longs forced to liquidate, rather than fresh sellers. Even if it happened to be trapped shorts, 300-400 lots would not drive any major short covering beyond a few handles anyway. In any case, it was a nice signal of exhaustion and thank you for highlighting it. Thanks for the analysis as always! It is a tricky market (for me anyway) ...
Great day again! Thank you, buddy! Had shorts and some scalps long!
Nice call on 4205. I wouldn't have seen that if not for the ONH.
I would disagree that the few hundred lots at the lows were "trapped sellers." Given that it was clearly stop orders triggering (because it was so fast that none traded at the offer), it is most likely the last of the early longs forced to liquidate, rather than fresh sellers. Even if it happened to be trapped shorts, 300-400 lots would not drive any major short covering beyond a few handles anyway. In any case, it was a nice signal of exhaustion and thank you for highlighting it. Thanks for the analysis as always! It is a tricky market (for me anyway) ...
Amazing, thank you!