1. Starting April 2015 we’ll be posting public charts to this section of the website titled:
You can either bookmark the link above, or subscribe to the email list link to the left of this page. I will still post links to these charts on the public twitter stream, but will no longer post charts there. The reason is simply that twitter does not provide a good tracking mechanism to view how these charts change over time. This site does this much better as the historical content is easily searchable and reviewable if hosted here. Chart context and history matters as markets evolve, in my humble opinion anyways.
This section will also be largely focused on charts as opposed to in depth analysis. None of these charts constitute a trade recommendation, but you may find them helpful for your own analysis.
2. More detailed market reviews and analysis will be found in the also public “Market Analysis” section of the site. This is were we post more in depth content such as the popular “Weekend Chart” segments.
3. Daily in depth market analysis, charts, market discussion and trade strategy are available to members in the “Member Content” section in addition to the private feed access. On how to become a member please visit the “Sign-Up” page.
On to charts:
Yesterday we discussed in detail on how we approached the most recent action in “The Whisperer”.
As part of our recent discussions we’ve been analyzing various market structures and have used them to surf the $SPY, mostly via the $ES.
The latest tradable structure we identified came in form of a large gap up yesterday. And while we were long we chose to close longs and instead flip short as the structure offered a complete repeat of the March 16 Monday gap and run. From the public feed yesterday:
— Northy (@NorthmanTrader) March 30, 2015
Here’s how we’ve traded it in the member feed:
We recognized the structure build up and saw potential for a moving average reconnect per the March 16/17 event. This also called for a gap down event, hence we chose to close remaining longs:
Then we went ahead to establish the short per pattern formation:
This morning we did indeed see the gap down into MA support:
And this afternoon the break into lower MA support:
As you can see the structure replayed very closely to what took place on March 16/17. All of this independent of news, Fed talk, wars, month end or quarter end considerations. We witnessed a structure replay and the charts gave us a good set-up to trade.
Now on to the next trade 😉
For now we can observe that the $SPX closed the month and quarter in one of the oddest moving average constellations I can recall seeing. Should make for an interesting next quarter:
Categories: Daily Market Brief