XJO - narrow spread - light volume - a tad (3m) higher than yesterday but still very light (no demandish). And spread narrowing as it started moving above the the high volume bar from AUG5. Its not going to just float through here as it has last few days. It needs juice/volume but our market not impressed with the rise on the DOW on light volume. BHP put in a no demand day up on light volume, narrow spread but again, the will/demand not there today to drive it far into the supply zone between the highs of the AUG 5th and 9th bars.
Red - re Holiday volume again on the DOW - anything that makes my head hurt I ignore - High low close volume and where price is in relation to the trend will do me fine - what happens next more important to me than what happened last holiday. While I agree there is strength appearing at the bottom of the range - its the lack of demand to the upside that would lead me to believe they haven't completed accumulation yet (if thats what they are doing) - and if they are accumulating, there is no need to take price higher while supply is still present at the lows - and its in their interest to allow price to rally to attract fresh players long who become NEW potential sellers as they pressure their positions - and its also in their interest if possible to shake the market out lower if they can as they did last week that has resulted in a volume/supply vacuum thats allowed it to spring. And if they have finished accumulation and are ready to mark it up, they aren't going to do it with unchecked supply still present - a higher low on real light volume will give us a clue that they are checking out the competition to make sure as few nervous nellies as possible are going to sell into a markup.
Chris, nice chart - and yes price does pay, so long as you are on the right side of it - and you've got long setups all the way up on the intraday - nice uptrend so no need for traders to just watch it going up (depending on what time frame you are trading) though there is weakness coming in on the larger time frame. When I see weakness on the DOW, I'm not using that to decide if I am trading long or short - I use it to guage risk. If I think our market will have a negative reaction to the DOW, and I'm looking at the BHP 3min chart - if I see a short setup I will tend to take it early and higher risk - wheras if a long setup were to appear on the chart - I would wait for a good long sequence to setup even if I miss a bit.
(20min delay)