Market Updates

Whales, Sharks, and Tuna The stock market is much like the ocean.  Traders fall into 3 categories: whales, sharks, and tuna.  The whales are the big funds.  They trade in the millions or billions of dollars.  They buy the lows and sell the highs.  Their big trades move markets.  The sharks are the high frequency trading machines (HFT's).  The HFT's buy and sell quickly.  They like to drop price to force you out of a position and then buy those lows, only to drive price up again.  Then they sell you the highs and and drop it again.  If you are reading this post, most likely you are a tuna.  The bad news is that most tuna get eaten.  Some tuna get away.  The best strategy for a tuna to live is to follow the whales and avoid the sharks.  Read on to find out how. The Boys at Mission Control Most people think that news drives the stock market.  One would think that the stock trading masses see news and then the market...

  Background on dark pools can be found at this  link . Recap from  Last Week Looking at price action this week, those prints on 1/15 were buys, not sells.  That's why I put question marks on the charts.  Price is now above $22B in prints relative to Friday's close.  On 1/20, the boys at mission control printed about $1.6B in several tranches on the way up.  My guess is that they were juicing the market to the upside to distribute.  1/21 has $11.1B of prints, and now price is under that level.  Guessing that $11.1B is selling.  In the premarket on Friday, price caught on an old $5.4B print.  The current gravity point is $382.98 with $2.8B sitting there.  I expect to see more prints come in on Monday at this same level.   This Week On Monday and Tuesday, more prints came in at 384 and 383.  That brought the total to $27.2B over 383.  From what I've seen in the past, they like to hold the highs until the print...

  Background on dark pools can be found at this  link . Recap from  Last Week Since Friday 1/8/2021, price is sitting under about $34.8 billion in block trades.  Typically, it's no good when you see a group of block trades then price goes under, another group of block trades then price goes under, and so on.  The boys may be distributing.  Price is nearing the daily SMA20, where traders are trained to buy.  The futures are trading today and ES bounced right there. This Week Looking at price action this week, those prints on 1/15 were buys, not sells.  That's why I put question marks on the charts.  Price is now above $22B in prints relative to Friday's close.  On 1/20, the boys at mission control printed about $1.6B in several tranches on the way up.  My guess is that they were juicing the market to the upside to distribute.  1/21 has $11.1B of prints, and now price is under that level.  Guessing that $11.1B is selling....

Background on dark pools can be found at this link . Since Friday 1/8/2021, price is sitting under about $34.8 billion in block trades.  Typically, it's no good when you see a group of block trades then price goes under, another group of block trades then price goes under, and so on.  The boys may be distributing.  Price is nearing the daily SMA20, where traders are trained to buy.  The futures are trading today and ES bounced right there. Pivots for the week are 375.63, 377.04, and then 379.77.  That's where most of these trades sit.  Those pivots will typically act as support and resistance. Bonus for this week The scanner caught several large TLT trades this week.  Price is over those prints.  That chart could indicate dip buying, too.  TLT can be used as a hedge against a market drop.  Not always, but more often than not.  TLT give you one more data point to think about. Parting Thought I'm thinking about making the SPY data ava...