fresaid, I am leery of overnight gaps after a down day, which have become a norm. Clearly, buying is discouraged, and impulsive buying after a gap is encouraged. The reverse side of that is a professional selling near highs without disturbing the market price. Hence, I am not looking for much upside in April with an exception of a big spike on the news to stop out retail short holders.

    I would focus on trading a failed breakout to the upside on /NQ to get short, and a good dip in gold, and perhaps platinum.

    Valid point.  I was looking

    Posted by fredsaid on 29th of Mar 2023 at 12:25 pm

    Valid point.  I was looking at all those Volatility charts Matt posted yesterday and it looked like all of them have room to move to the upside indicating that the markets certainly have room to move down before forming any kind of short term bottom.   Getting pulled in both directions as the April Bullish Sentiment kicks in but given where we are along with the almost certain big break coming soon.  The scenario i presented is still viable, heck the whole market could sell off along with a rally in banks and oil and the SnP would still be rangebound and the QQQs should have a failed breakouts as you stated and hopefully we'll get a better opportunity to get into Gold.

    to me yesterday was noise

    Posted by matt on 29th of Mar 2023 at 11:31 am

    to me yesterday was noise - SPX closed in the middle of that coil from the 60 min. QQQ's were weakest but that was too be expected as some money rotates out of that area. Looks like I did the opposite to you, I wasn't worried about a gap down in the market this morning, yesterday the SPX closed right in the coil and bounced off the uptrend line on the 15 min chart, I favored a gap up in the market over the small trendline on that 60 min SPX not a gap down and took some URPO long yesterday near the close and in after hrs - worked out

    even now we are still within the coil like pattern on the 60 min SPX. We continue be in a choppy range, which I favor

    Matt, thanks again for sharing

    Posted by junkie on 29th of Mar 2023 at 11:38 am

    Matt, thanks again for sharing your style. Is there a good risk indicator that works for you to make these calls? $VIX was down yesterday, while HYG was down too. I trade MES, and need to be aware of stops for overnight action.

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