So took a quick scalp on SPY today. Here is what I saw. Feels good to get one right. I by no means know what doing. If I'm way off or my thinking is sound, especially as related to Market Maker Method, I love to hear your thoughts on my analysis. Teach me
My mindset has been that the MMs still are bullish on the market, (COT report) while most retail traders are waiting for the next drop. MMs want the little guy saying "Well PUTS aren't working. Time to try CALLS." MMs are trying to manipulate more people to think "long" so they can pull the rug, and go short. This is what was happening the last few days. Huge gap up, making you think long, buy calls, then boom! Drop, filling the gap as we speak.
Price has been in an accumulation/consolidation stage, not really going anywhere. Today, the retail trader was waiting for the breakout while volume on the five min chart was showing me that SPY wanted to stay down. Finally there was the big spike down accompanied by volume telling me we going down. Gap added to drop.
Overall, I think SPY still has one more level up. VIX shows me we have a little more down.
My mindset has been that the MMs still are bullish on the market, (COT report) while most retail traders are waiting for the next drop. MMs want the little guy saying "Well PUTS aren't working. Time to try CALLS." MMs are trying to manipulate more people to think "long" so they can pull the rug, and go short. This is what was happening the last few days. Huge gap up, making you think long, buy calls, then boom! Drop, filling the gap as we speak.
Price has been in an accumulation/consolidation stage, not really going anywhere. Today, the retail trader was waiting for the breakout while volume on the five min chart was showing me that SPY wanted to stay down. Finally there was the big spike down accompanied by volume telling me we going down. Gap added to drop.
Overall, I think SPY still has one more level up. VIX shows me we have a little more down.
Trade closed: target reached
Also RSI was trending down.