How's everyone doing today, I've been studying technical analysis for several years now and wanted to chime in with some of the obvious patterns I've been seeing in the markets lately. I first learned about some of these strategies from one of my mentors -- my uncle Gerald -- who worked at Jane Street from '08-'15 before he passed away from emphysema, he was an acolyte of the neoliberal tech. analysis, which I guess you could say combines some of the foundations of the different schools with a forward looking subservience to the neural networks underlying the inner pipings of moder portfolio theory. Anyway, I wanted to post this chart I made earlier today. I've noticed this pattern several times over the last 3-4 weeks of trading, which I'm attributing in large part to the massive vol swings. My uncle Gerry referred to these as Reverse Isosceles Inversions, or Stacked Russian Dolls (SRDs) in slang parlance, and they almost always presage a slight peak followed by a precipitous drop in the last 90-120 minutes of trading. In the picture I've uploaded, you'll notice the 3 orange triangles, first one biggest, which swallows the next, which in turn swallows the next. These point to an accelerating drop, which almost always is followed up by a slight pick up, before another drop, albeit slightly less severe. I won't bore you with multivariable calculus that underlies the slope of the curve, but suffice to say I've backtested this several times in order to arrive at this conclusion. Long story short, though, I just want to say, if you notice this pattern in intraday trading, it almost always is a good idea to pick up a triple-leveraged reverse S&P ETF (I'm partial to SPXU), and try to lever it up 3:1 usually for the last 60 minutes of trading. I've made swing trades in the last few weeks by carefully monitoring the last 2 hours of trading, net profits of ~$6,700. There are good ways to hedge the delta and vega here via deep OTM short-term dated options, but I'm admittedly not too familiar with those and anyway, it's pretty antithetical to the neoliberal teachings. Let me know what you guys think, would be curious to see if anybody else has noticed these patterns and has been able to profit off of these. Cheers... CJ Gay, CFA, MPH, MBA
Nothing abnormal. Hang seng, India nifty, China A 50, Taiwan index... Were up. Those pulled ES up slighty
Is that what caused that jolt to the hypotenuse? MidDay you say? ...let me check my chronometric instrument. Now...where did that confound thing get off to... Nope. Thanks for the alert, you are a fine goodfellow, hale hale and all that. Best to your uncle Gerry. https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-10#post-5019433