PTPer's

As Dick Vitale labeled Prime Time Performers many years ago, I of course thought of the greatest of all time, and the PPT is certainly in the conversation. The above is a 5 minute chart of the SP 500 yesterday with another "coincidence" rally in the last 30 minutes. You just have to admit that they are really good at what they do. Friday's late the volume drops off, and they pounce. When they have been doing this it has been too late in the day to get prices all the way back to unchanged, but they certainly mitigated the damage here big time yesterday. I do not know if they are so good that this was the only buy program they executed, and it happened to be at the perfect time, or they tried a few during the day and this one finally worked. I suspect the former just because this is the time zone they have been typically the most active.

These "coincidences" are tradeable if you are inclined to do so. I would suggest just waiting for the first higher short term low to form in the last hour of each day, and just trading the breakout of the high of it. This would have worked probably for an 80% win rate in the last year. Rarely do intraday strategies work with that high a level of accuracy. I remember my fade Barry trade when he was first elected working at an even higher clip for awhile. Unfortunately alot of people eventually figured that trade out, so it stopped working. That trade was just to fade the market every time that idiot made a live speech. It worked so well it was funny. This one is based on a little more history, so I think it will continue to work due to it being an insider deal with a couple huge institutions. They won't stop doing it for a variety of reasons, and you are also going in the direction of the fix.

WHERE DO WE GO NEXT?

Here is a chart that shows a proprietary indicator that I use for divergences at standard deviations. It is no surprise we hit the 3.0 standard deviation band on that meltdown Thursday. What I look for here is a new low which in this case would be under 1050 where this indicator makes a higher low. When that also occurs at a 3.0 standard deviation band, we have a good recipe for a big reversal. Will we get down there or will it diverge when we do? I have no idea. However, if it does, it will be both hands on the long side for me. This is just something to watch, and could be a good re-entry point for the long side for those who want to hold for awhile. If it does trigger at the time, I will post it here.

The next chart shows where we are right now, and a possible case for why we won't go back down there.

This is a weekly chart of the SP 500 with my bands that contain price. Without divulging all the rules, you basically look for entries in the direction of the trend when the red line is hit ( sells ) and the green line is hit ( buys ). The way the trend is defined is a secret which I will not give up because it is very unique. However, it is up at the moment, so that says we are in a buy zone right here. Some of the very best trades come when these lines get penetrated by a large amount, yet the trend stays intact. This might be happening right here since we have penetrated the lines by alot and the trend has remained up. This gives you huge snapback moves. The markets are difficult reads right here, alot of cross currents. Bigger picture, we went into a very important price area in the 1235 zone, and we have already seen a huge reaction down from that. It then went right to the 200 day average, which also happened to be in the above buy zone, and now we have bounced quite a bit.

I am planning on playing this in the following fashion. If we get a lower short term high than the high of this past week, or a false breakout of it that quickly reverses, I will looking to short aggressively. If we go down and take out 1050 I will be looking for longs initially down there. If we break through there decisively, I will then shift to the short side because the weekly trend will have changed. As a result, the next couple of days do not likely have a trade for me here. I do think there is more weighing on the side of this rolling over and the trend changing to down, but not enough to just take a one sided stand on this right now. Trading is about reading what is happening and adjusting accordingly. At this juncture, I do not have consistent enough readings in everything to take a trade Monday.

I did mention the only way I would short Friday was on a mid day bounce. I did do that trade for chump change on a tick chart. I had some technical problems with Genesis which happens every day and it happened right when I entered the trade of course. There is nothing like entering a day trade then having your data go offline the second you enter! As a result, I had to bail out of it after about 10 minutes. This was lucky, I wound up getting almost the exact low on my exit. The trade was a profit, but not worth posting here. Make no mistake, I love Genesis, but the live data feeds suck with them. The people are fantastic and the overnight analysis abilities are second to none with them. Trading with live data is not at the same level. I also have lousy internet speeds due to where I live, so it is challenging along those lines as well.

Tradestation is the best if you have slow internet. It is by far the most stable at slow speeds. I never have a date issue intraday with them. If you have Satellite internet like I do I would suggest Tradestation. They are the only data feed I have found that is stable at these slow speeds.

Alot of other markets are kind of messed up due to the huge stock move, so it may take another week or two to get good reads on everything. I hope not.

Good Trading to Everyone