We havent gotten the 882.5 yet....lets test that this afternoon. CD has been divergent to yesterdays low. I have been taking shots at the long side all morning. Had to wash out a few times but finally caught the 4 pt at 85.25 .
Looks like a possible Net Long Delta Zone off of 884 http://www.charthub.com/images/2009/06/23/3Range.png
How do you know which one of the divergences to take as a long entry, or you take them all and then the exit strategy takes care of the losses, or do you wait for a retest of 884.25?. JW
I wish I could tell you a definitive answer. I am not the resident expert on CDV usage. I was hoping AMT would weigh in on it. On one hand, you have appears to be 20k net longs from 884-888. On the other hand, 884 is middle of nowhere compared to say, 872. 884 might not be backed up by an important pre-existing delta zone. But is it possible that we formed a new net long delta zone here? Are they possibly layering in an inventory of longs? I've no idea. AMT4SWA? It did seem like odd behavior to me. They purchased a lot of contracts at the offer and yet prices didnt substantially rise. Personally, I took a long at 888.25, looking for an exit at 895. It never made it to my target.
Hello AMT, Looks like longs used today to build up a increased net long position for a retest of the 900 area or higher first before a test of 872? If this is what you also see, if you aren't already in a position yet, would this keep you out of shorts for the time being?
895.25-891.50 is where they look like they're building short positions. Strictly looking at the volume profile chart. Would like to see this line get tested for CD. Anyone looking at something different? http://www.charthub.com/images/2009/06/23/Untitled_30.png
Unless my CD readings are wrong, it looks like those short are gone for all practical purposes . . . at EOD it looks like there might have been a build of shorts at the 893.50 touch, but I'd think a lot of those were profit takers from LOD . . . is the area you mention a reference point for intraday action? I think, Yes, but todays LOD is bigger . . . IMHO jmonday actually may have a valid point. We saw massive divergence at test of the LOD early in the AM, we actually made new lows from AH but each time on positive delta. As far as I can tell, there seem to be a large (~25K) buyer inventory in the 884.25-885.25 zone . . . and roughly 35K in the 884.25-887.25 zone . . . A lousy day IMHO . . . everyone seems to be waiting for FOMC on Wednesday . . . My $0.02 (I guess less as someone had pointed out earlier, we need to adjust for deflation ) I'll let AMT enlighten us . . .