Education
Now Reading
Volume Holes
44

Volume Holes

by The MoleJune 19, 2017

Equities continue to be a mixed bag and while simple price tells one part of the story the volume profile also shows us the ranges where we should expect buying and selling pressure. Of course bear in mind that the volume profile is based on historical context and for a true perspective we would need to acquire fairly costly Level 2 access and then evaluate the offering and bidding lots. For the average retail rat Level 2 access is however way outside the budget so I guess volume holes it is.

2017-06-19_spoos

Let’s start with price though for some basic tape reading. Clearly volatility has been exploding as of late and that means we need to think in wider ranges and thus protect our positions accordingly. Not that I feel particular tempted right here right now. But generally speaking this chart, on its own, is looking pretty damn bullish as sellers have not been able to get anywhere thus far.

2017-06-19_spoos_volume

Now let’s talk volume holes. There is a narrow one right about where the E-Mini is trying to push into right now, i.e. below 2440. Once that one is taken out I expect moderate buying which if maintained could propel us to new heights.

2017-06-19_NQ

The NQ meanwhile is looking a lot less enthusiastic and is still trying to collect itself after last week’s sell off. The bulls are basically on notice here until 5785 (the last spike high) can be breached and thus establish a higher high. We may have a double bottom type situation here but it would have been more convincing had the 6/16 lows not breached the previous one on 6/12.

2017-06-19_NQ_volume

Now here’s the volume profile on the NQ and it’s looking pretty ugly anywhere starting at about 5760 as I see a ton of selling activity there which may project forward to the here and now. The fact that the ES and YM are more bullish does float even the leaking boat but unless we see a very strong drive upward on the other two I expect there will be upside resistance once the NQ pops above 5760. Ergo, if you’re long here then take partial profits near slightly below that range.

2017-06-19_copper_update

Copper looking pretty polished and orderly this morning and our campaign looks like it may have legs. I’m now advancing my stop to b/e as it’s still early days and the daily panel is still trying to pick a direction.

evil_separator

It's not too late - learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.
  • http://evilspeculator.com Sir Mole III

    Happy Monday everyone!!

  • ridingwaves

    And to you also…
    XBI near break out area…to stick on post theme, volume hole at 73 gets filled 80 comes easy and target 96 might be due to triple top breakout….
    https://s21.postimg.org/hcuur24mv/XBI_pnf_61917.png

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • ridingwaves

    gold bouncing around that 1249 area you touched on in prior post, interested?

  • http://evilspeculator.com Sir Mole III

    Looked at that this morning and decided against it. That 100-day SMA was only a preliminary target and note that it has been completely ignored as of late. So we would have to see a very pronounced price reaction here before we could even remotely consider an entry. Just my 2 cents for what it’s worth.

  • http://evilspeculator.com Sir Mole III

    Well, I worked all through the weekend. Every day is pretty much the same to me. Love what I do though so for me it’s always happy days 😉

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb

    I walked through the graveyard yesterday, for Father’s Day.

    No worries. Under this Monday veneer of grumpiness, is some terribly grateful-to-be-alive sh!t.

    -GG

  • BobbyLow

    Now that’s one grumpy cat. LOL

    FWIW, I got back into DUST this morning. We’ll see how it goes.

  • ridingwaves

    thanks, a quick stop run lower than above 100sma would make me a buyer….plus some other variables I’m watching..

  • http://evilspeculator.com Sir Mole III

    I really don’t think that is more than a fantasy line at this point but have at it.

  • http://evilspeculator.com Sir Mole III

    Dude, it’s an extremely invigorating experience. I always point at every grave and mumble something along the lines of ‘outlived this mofo…. outlived that mofo…. yup, beat you too… shouldn’t have been taking crack … smoking is bad for ya… etc..’

    j/k – it’s a humbling experience as you realize that everyone’s days are numbered – NO EXCEPTIONS and NO MULLIGANS!

  • Darkthirty

    Are volume holes the same as gaps on the daily markets?

  • http://evilspeculator.com Sir Mole III

    Implicitly I think so. Because opening gaps barely have any participation, thus buyers or sellers didn’t have any opportunity to get deployed.

  • http://evilspeculator.com Sir Mole III

    (had to correct my answer and simplify it as the situation is complex – sorry)

  • ridingwaves

    breakout, just threw in the opposite video for some monday fun
    https://www.youtube.com/watch?v=jCtsJqkckFk

  • Darkthirty

    I was thinking opening gaps were AH algo pumps, i.e. no volume. And yes, I’ve watched quite a few 6-10 point no volume spikes….

  • Mark Shinnick

    $ support is looking generally ok.

  • Mark Shinnick

    Yeah…its always good to wake up :)

  • http://evilspeculator.com Sir Mole III

    Sometimes they are also event driven.

  • ridingwaves

    true and actually looks bullish above 97.70 candle from 5/30

  • Darkthirty

    Whoa!!! What happened to ‘pay no attention to the news’ ?

  • ridingwaves

    especially bio sector..

  • ridingwaves

    L CYTR .59 stop 55.25

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb

    ..you’ll never find a more wretched hive of….(never mind)

  • ridingwaves

    XBI and IBB are jamming

  • http://evilspeculator.com Sir Mole III

    Unfortunately everyone else is.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • Mark Shinnick

    GILD met its downside objectives for you, I’m guessing?? Looks like 65.11 a big tell.

  • ridingwaves
  • ridingwaves

    I think the real tell is 66 area…but its just bottoming out now, more longer term on that one…still picking up 2 bucks on every $64

  • ridingwaves

    check the weekly out on your chart 2 years….hmmmmm yummy

  • Mark Shinnick

    SSW now appearing supported.

  • Brishort

    NQ @ Mole key resistance, zero generally not strong (albeit slightly above zero) on drift-up after this morning gap. The key I believe is in VXN whereby current intraday double bottom is the tell all of the next move.

  • Brishort

    $VXN:$NDX , on short term trend down move watch when ration goes above mid BB point. We are clearly in that vicinity.
    http://schrts.co/STgwxv

  • http://evilspeculator.com Sir Mole III

    Zero snapshot. Only moderate buying thus far as suggested this morning. Needs to kick into 3rd gear now or risk facing a sell off.

    https://uploads.disquscdn.com/images/b470fa034842217dff2158e1f5b15805131721c7d7bbd5e487a30c5534a9926a.png

  • ridingwaves

    a picnic basket so far…yummy….3rd time is charm…
    https://www.youtube.com/watch?v=1pqyax6gwzQ

  • BobbyLow

    Another day another record high on the DOW. The March, 2009 Low seems like a lifetime ago. Who woulda eva thunk it?

    In the mean time, I remain short miners via DUST.

  • http://evilspeculator.com Sir Mole III

    You guys and the miners… how’s tricks, Bobby?

  • http://evilspeculator.com Sir Mole III

    It’s been a while since I saw you – how’s the trading?

  • BobbyLow

    Doing good Mole. Thanks.

    LOL on the miners. I like the price action on the miners much better than any of the equity indices. If anyone had told me years ago that I would be trading the 3X Miners, I probably would have called them crazy. But here I am. :)

  • ridingwaves

    Dr. Ed has good post on why tech is not like 2000-1 bubble….very strong points he makes…
    http://blog.yardeni.com/2017/06/relative-exuberance-for-tech.html

  • http://evilspeculator.com Sir Mole III

    As long as it works for you.

  • http://evilspeculator.com Sir Mole III
  • http://evilspeculator.com Sir Mole III

    So this time it’s different? 😉