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2018-06-10
ES #F Demand on very low volume


The daily chart above shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals.

Readings are based on Supply and Demand and Volume internal data of the total market. It is updated in real time during the regular trading session of the NY Stock exchange and does NOT take into account any price indicators or mathematical formulas using price. We do however show the cumulative price change for the trading session and in some instances assess price movement’s relationship to Supply and Demand.

It is therefore fair to say that the readings and signals are independent from other popular price indicators and others shown on the chart. The readings are an independent assessment of the one and only measureable fundamental market mover: SUPPLY and DEMAND. It does not matter if price is influenced by a geopolitical event, seasonality, fundamental economic data releases or sentiment driven news, etc. It all reflects in Supply and Demand, the “footprints” of the “Big Boys” or “Smart Money”.

Click here for example of reversal trade taken in Feeder Cattle that can be found on this page.

Friday the ES traded to a low of 2755.75 in early hours before the regular trading session opened, but closed up 10.25-points on the lowest daily volume since March the 9th. A Kamikaze Up bar (Crowd activity by retail traders pattern, according to our SmartKam paint bar tool) occurred near resistance at 2794.00 to the upside. Buying pressure is also weakening with a divergence to the down side. This may signal a pullback for early next week, before another leg up.

Some more weakness is a possibility, because of the weekends G7 meeting that did not go as well as hoped for and may have a negative impact on the markets, before moving higher again.

Daily Signals June the 8th

Dashboard:

The Supply and Demand Reading (1st row) came it at 5.0 with Demand dominating the trading session.

Supply and Demand Direction (3nd row) was to the upside (lime up triangle), indicating upwards direction, with substantial strength.

Average Supply and Demand Volatility (4th row) is still below 100% and is bullish. The change in average Volatility from the previous day was positive 8 (Demand strengthened) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We had a buy market signal on the signals board (1st row).

Daily Volatility direction (2nd row) was Up (blue up triangle). The change in daily Volatility from the previous day was positive 21 (Demand strengthened) shown on the right of BXB Dashboard.

The overall NY Stock market traded Higher for the day (blue up triangle in 3rd row).

55% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 63%, a negative sign for the markets.

We are neutral as to the near-term direction, but bullish on the longer term.

 

Caution:

Friday was a very low volume day with a Kamikaze pattern. A pullback to the 2745.50 level remains a possibility, before another move higher.

 

Intraday

We took two long opportunities during the last trading session on the 26-minute chart below. The first entry was stopped out at a loss, but the second one resulted in a nice move up. Entries and exits are shown with arrows:

Strategy is simple, enter when 2 Dashboards align and exit when two opposite triangles on BXB Dashboard appears, shown with arrows on the chart. We do not take trades when the of Supply and Demand Sentiment tool is at or near extremes (over-bought/sold) in the same direction of the possible trade. The last sub window on the chart below shows the Greed / Fear sentiment measurements of Supply and Demand Sentiment tool. Similar to an Oversold / Overbought situation (but without using price related formulas).

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The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading.

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