Glaz & Chris Moody's GANN SWING trend hung in there on this uptrend and pushed through the 20-days of overhead supply at the 370 level like it was barely a threat. Normally it takes a few tries and more than a few days to push through an old level of resistance like that. The "Time at Mode" Box projected or allowed for a rally to the 375 level and it has made it today with the move up over 380.
The 370 level should be support on the way back down on setbacks. Let's see if another range can build up here with 8 or 9 days which can set up a rally to even higher levels.
Tim 8:53AM EST 10/30/2014
Comments
timwest
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Here's an update - it was nice to see a decent reaction to a key resistance level - Big range today - Here's the chart ---
elcololp
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Read this: OCTOBER 21st, 2014.
Calls Trade In DBA - Opening Call Buying
Shares of PowerShares DB Agriculture (DBA) are up .03 to 25.90. DBA is near the middle of the 52 week range.
Today paper traded 752 DBA Jan 26 calls for .75. The ADV is 581 contracts. The OI is 1657 contracts.
Volume went up in one block. The trade on the strike is 16092 contacts with paper paying .75 for thousands of calls in small to midsize blocks. The customers are looking for a big jump in commodity prices into the end of the year. This is a possible newsletter trade.
The Options Insider last profiled DBA on Feb 2nd stating:
“Today paper traded 1500 Mar 24 calls in DBA for 1.05-1.10. ADV is 264 contracts. The OI is over 5 for each strike. The volume went up in mid-size blocks with some paper trading through the offer at the time. The opening trades look to be bullish with the IV up .78 in March which is a good sized move for a 7.8% realized volatility product.”
timwest
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Nice info. Good to see IV up on volume. It could be hedging to lock in profits from short positions or to front run their own "buy to cover" trades forthcoming. Option info is always interesting and gives you another perspective into what else might be going on in a stock. Thanks @elcololp.
elcololp
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you welcome!
elcololp
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Nice!
IvanLabrie
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Powerful rally indeed, fascinating chart/s.
dheffta
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I appreciate your analysis Tim. Question - is there any significance to matching the high tick today from 8/18?
timwest
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Hello @dheffta, All information is interesting, but I wont put much significance on it matching a high. The prices that have the fewest # of days of trading are significant to me. Corn approached a price zone where it has traded very little, which tells me that there are massive sellers at that level. Those are the two good things to know = 1. where does something trade often (the mode) and 2. where does something not trade often. These are "key" levels.
dheffta
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Thank you for taking the time to explain your thinking Tim!
IvanLabrie
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This is invaluable information ^ Seems so simple, but the application is really powerful. Thanks Tim!