[Tradewinds]

10-19-10 The ES dropped hard right after it returned back to the days opening price at 13:46. Accumulated Volume was down all day. UVol - DVol was down all day. There was a steady march down in Down Volume all day. Even though there was much more down volume than up volume, the price of the ES was actually above the open until early afternoon. So I consider that a divergence. Price was up, but there was more down volume. Something had to "give" sooner or later. And the breakdown resulted in a sudden 10 point drop over about 13 minutes.

[cuttshot]

Tradewinds,

Should be interesting the next few days with earnings continuing, beige book tomorrow, and unemployment claims on Thursday. I personally think we have some room to the downside here but we'll have to wait and see how things play out. Just have to keep an eye on the internals to guage the strength of any of the moves. Thanks for the post.

[Tradewinds]

I'm very interested in strategising using news, internals and gaps. I'd like to discipline myself to forecast what the ES might do the next day, then keep a log of how successful my predictions were. I wish this site had the ability to create a database table.

[Tradewinds]

ES End of Day Commentary 10-20-10 - Traders Laboratory - Professional Traders Community

[cuttshot]

What other internals are you following? I like watching the advance/decline line on both the NYSE and and NASDAQ as well as the uvol/dvol on both as well. I also look at the trin on both of these. Finally, I like to look at the 5 and 15 min charts on the SPY and at times the SPX. On these charts I look at the 20, 50, and 200 moving averages. Using all this does help give me a feel for current market conditions. How does this compare to what you are doing?

[Tradewinds]

Originally Posted by cuttshot »

What other internals are you following?

I also watch accumulated volume. Sometimes the /ES turns when the accumulated volume starts to turn or has a bump in it. It happens regularly enough, so that it's worth looking at. The uvol/dvol is of less use, but I still watch it. uvol/dvol often is out of sync with the the advance/decline line, and the price of the ES follows the the advance/decline line. The TICK often leads price by quite a lot. Because the TICK is very choppy and just looks like a jumbled mess on a chart, it is difficult to figure out the patterns. But the TICK does have patterns, it does trend, and it is the best leading indicator that I know of.

[bigsnack]

Originally Posted by Tradewinds »

I also watch accumulated volume. Sometimes the /ES turns when the accumulated volume starts to turn or has a bump in it. It happens regularly enough, so that it's worth looking at. The uvol/dvol is of less use, but I still watch it. uvol/dvol often is out of sync with the the advance/decline line, and the price of the ES follows the the advance/decline line. The TICK often leads price by quite a lot. Because the TICK is very choppy and just looks like a jumbled mess on a chart, it is difficult to figure out the patterns. But the TICK does have patterns, it does trend, and it is the best leading indicator that I know of.

Agreed! It's like any indicator, you just have to spend enough time with it to know what it's telling you. The TICK is my one indicator crutch.

[Tradewinds]

ES Morning analysis Nov. 1, 2010

Es 11-1-10 - Traders Laboratory - Professional Traders Community