MMMR Volatility Model

A quick peek at my Market Maker Mind Reader (MMMR) Volatility model shows some interesting candles in the past two days. I managed to map the SPX in blue below. Look what happened yesterday – we actually dropped all the way to the bottom of the Bollinger and opened a lot higher today. This strongly suggests that today’s sell off was engineered and the late day reversal was part of the script all along. Sorry for not looking at this earlier but I just can’t figure out a way to bookmark complex ratio charts in TOS Prophet charts. Typing them in is a pain.

Does that mean the RTV Sell setup is dead? Not so fast, grasshopper! After all we have not breached yesterday’s highs on the SPX just yet (i.e. 1352.25), and per my earlier post today there’s nothing for us to do until that happens. A setup is a setup – period – and I’m sure Scott would agree.

What is a lot more interesting however is how close we got to the upper BB range on that MMMR volatility signal today. And even more interesting is the fact that the BB range is starting to roll over now. Make no mistake – this could change in a day or two if we power higher and blast all the shorts (always a possibility, especially given the tiny Zero range in the past month). But if we drop from here then this could tie into a possible trend change formation. I’ll keep an eye on this and will post an update as soon as I see more movement.

UPDATE 11:18pm EDT: I sent this out to my subs a little while ago:

Things seem to be accelerating after hours. Seems like we are going to bust Scott’s RTV Sell signal tomorrow – unless there’s a strong reversal in the coming hours. Please take a look at the enclosed snapshot of the spoos – I also plotted the AUD/JPY in the background as a blue line. Assuming a fair value of -3.00 this roughly puts the SPX at 1358 as I’m typing this with a recent high above 1360.

If things continue higher AND you are exposed to the short side in equities then you may want to consider a little hedge via the spoos or the AUD/JPY. Obviously this could be a fade but if we hang around here until tomorrow we’ll gap the open and trigger a bit of a squeeze. If that happens watch the Zero Lite for non-confirmation or divergences in the morning – which has been the script for the past two weeks.

Good luck 😉