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Strange Tape
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Strange Tape

Strange Tape

by The MoleMarch 6, 2009

UPDATE 12:30pm EST: I just played the ES futures a little bit and got in at 675 the bottom and out at 682. BTW, had you been a Zero subscriber you’d been riding along 😉

The tape is really strange today. Take that big spike in the morning for instance – followed up by a drop and then another rally attempt which seems to be falling apart right now. Frankly, I’m not sure yet how to interpret that – either we keep sub-dividing on a Minuette wave degree level or we might be bottoming here. I don’t think I’m selling out my Zero subscribers by mentioning that there is no participation at this point and the signal has gone flat. There was a beautiful divergence we played an hour ago which I’ll post as part of the wrap up later.

I still would prefer to see 650 before we bust higher but we’re spending an awfully long time down here. Above my SPX chart once more – I think the trigger point for Minor 4 remains a breach of that SPY channel I keep rubbing in your faces.

Again – I don’t see enough long ideas – keep working on that, my evil rat minions!

UPDATE 2:00pm EST: FYI – this is the kind of stuff Keirsten keeps seeing on her SPY Level II screen for the past two days now:

I don’t know about you rats, but I have very little confidence down here – throw in a flat Zero signal and you’ve got the recipe for a monster slingshot rally. The sooner we touch 650 and get this over with the better. I myself will probably go long at that level – I will keep you apprised.

For you rats who haven’t seen a Level II order history screen before: These are large block orders by institutionals – the reason why they are white is that they are hiding those blocks, so you don’t know if those are sell or buy orders. I do have a inkling what’s going on and it involves buying massive amount of calls (or selling large chunks of puts) ahead of a buying frenzy in the commons. I could be wrong – so please do not take my word on this – it’s just a theory. I’m sure many here will disagree – interpret this at your own risk. Or, if you can’t make heads or tails out of it it’s probably best to stay out and watch.

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 the usual social media waterholes.
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