Saturday, February 20, 2010

Tuesday February 16th, Day in Review

Three day weekend for the markets, globex session holds Friday's VPOC (Volume Point of Control) rallies past last weeks high which happens to be Friday's close and gap fill as well, comes back to test that same level during globex and bounces. So we had signals of strength early on.

9:30 am market opens at 1083.75, way above Friday's value and high, again signaling strength. The Initial Balance is the 9:30 to 10:30 am trading hour when most business transpires. Very important hour that you will hear me talk about a lot, I will refer to it as only IB for now on to simplify. We once again drop to test the high and close the gap during the IB period. It holds yet again, very bullish for the day, test of Globex highs at least coming.

We test globex highs around the 11am mark, it is met with some minor resistance initially. But gets broken to the upside by 12pm. Bullishness continues now as long as globex highs hold.

We see continued trading around this area for an hour or so, Globex highs still holding = bullish, odds favor a run-up into the close now. Which we get, market closes at it highs for the day. Bulls win for the day!

Volume profile chart shows heavy volume transactions at:
1081 Price levels

Above chart shows ideal low risk trade setups given for today.

Final Day stats
Initial Balance Range - 5pts
Regular Trading Hours Range - 14.5pts
Full Day Range - 20.5pts
Volume - 1,874,920 contracts