Buy/Sell Pressure vs. Volume

The difference between Buy/Sell pressure and volume is as different as night and day. Both charts above are Daily S&P mid-July when the world was focused on the 'head and shoulders' formation. The word was, "The Market Is Going Down".

Fast forward to the chart above. As you now know we went past the "head" of the "head and shoulders" and right through the Daily 50% level of 989 from the launch around 865.

Almost 130 points in 10 trading days!

I call their method voodoo chart reading. They take a formation that works 10 times out of 100 and they run around telling each other, "Head and shoulders! Head and shoulders! The fake rally is over! As if repeating it enough times will make it come true. I think it just helps the "Casino Traders" feel better because they hate the land of "Not Knowing".

Volume can't tell you direction until after the trade is gone.

Only buying and selling pressure can give you actionable, advance notice.

Buying and selling pressure can't lie.

Volume lies all the time.

The herd gets slaughtered. Without them we don't eat.

How about YOU?

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Volume vs. Buying/Selling Pressure

There are two charts in the next post up.
They were looking at Volume. They saw a drop in Volume. They drew a line indicating that lower volume meant that there would be a drop in price.

On the other hand I don't care what the Volume is. In fact, smart money often accumulates or buys at a low and they try to do it withou being detected. They don't want competition at the "bargain table".

My interest is in the Buying and Selling pressure. That's what tells' me what is going to happen next with price direction.

One of the fun things about trading is reading the "URGENT" emails I get from so-called experts who are going to help me make money in the markets. They promise that if I send them money they will alert me to all the critical moves in the markets.

Well here we go again. There are two Daily S&P charts I'd like to show you.

One is mine and one is their's.


Guess who go it right?

Is It Real?

Since March there have been many predictions about this current rally.

I guess what I've enjoyed most about the last 4 months is watching all the predictions and their basis while just going along trading whatever the market gives me one-day-at-a-time.

Today was a good example. I like it when CNBC does their "Fast Money" interviews and asks each guest 'expert' how they think the market will be into the close. Today most were stumped. But one floor trader said, "I'll be a seller into the close."

I just wish I could thank him personally for the profits the "sellers" gave me today, as they were panic buying to cover their positions into and after the close.

To answer the question. "Is It Real?"

Yes.... It's Real!

The profits were just as real to me as their losses were to them.

The last two weeks have been rock-solid real.

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Reading Buying and Selling Pressure

Can it get any easier? The hardest part is to resist your thinking that doesn't believe it's this simple.

Let's do a little test.

What does this say to you? OPPORTUNITYISNOWHERE

CLUE: There are two possibilities.

Which one did you see first?

Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.