AbsolutionCL

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    Monday, January 10, 2011

    Homework 12-10-2011

    Chart:

    A.M. Thoughts: Overnight condition inventories to the sell side. Value moving lower with volume. Expecting OAIR or OAOR to the downside. We are within a 5 day balance. Expect to break out to the down side. 1257.75 key to break for bears.
    7:15 O/N VPOC shifted up.


    Hypothesis: At the open, longs may liquidate because of the overnight liquidation. We may open in range. If so, probably be a fade-the-edges day. If we open out of range to the down side, we may continue down to the naked VPOC which is at 1254.25 also a CHVN at 1264.00. Conversely, if we open out of range to the down side we could have a snap back rally.

    Plan:Will look to sell rallies if we break Friday's low, unless we get that snap back rally. However, should we stay within Friday's range, I will look to fade the extremes.

    Follow the plan/chart

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