How do you know
This feeling when I'm awake
How do you know that
Yeah how do you know
Confidence on the floor
How do you know that
I feel more with less
Unkle, Feel More / With Less, 2019
…
The market pops higher and takes a look at 2885 – just a few points from the upper extreme of the channel (the faint red line on my charts) – before embarking on a roller coaster ride for the remainder of the day.
As the market moves closer to the upper extreme of the channel the risk of profit-taking initiating strong selling is raised as participants re-cycle positions and fear of missing out provides the additional liquidity for major players to distribute.
The T volume oscillator moves a little lower, perhaps the canary signal, and the equity Put/Call ratios flashes a warning – that the market may be becoming vulnerable to a decline again. Not to mention that the market was 100 points off the recent lows yesterday.
Momentum ticks up and the Osc oscillator makes a Buy Signal, and volatility ticks up too suggesting an increased range ahead.
Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
