Market Analysis and Trades for 2/27

Choose Your Fighter

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The weekly post and for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to Market Analysis for The Week Ahead

AMD 0.00%↑ is coming into my area of interest. I have waited since last summer for this area. If buyers show up where I expect them to, I will be long. Here is a link to the original post. AMD Where and How I Will Get Long

For today we were monitoring if buyers could take out yesterday’s high (they did) and then whether or not sellers would defend last week’s low (they did). To me this was the major line of defense for sellers and clearly can be carried forward as today’s high ended up there as well.

This actually provided a fantastic short setup intraday which ended up resolving for 70+ handles. The fact that the IB high (6020.5) was set just below our major 6021.5-6024.5 range made this an excellent setup. From 10:27 EST before the IB close (10:30):

The trap came in right after 11am:

The 11:02 candle, while looking like an extremely bullish solid bodied breakout candle, was in fact fully absorbed by a fair large seller that had been identified earlier. Price traded a few ticks higher as the absorption continued. Note how once 18 was cleanly offered from below the major liquidation started.

I covered the last of my runners just over +70 at 2:11 EST

Bulls accomplished the minimum requirement they need to ahead of NVDA 0.00%↑ earnings (take out yesterday’s high to pause the active downtrend) but sellers also accomplished what they needed to (defending last week’s low). As of the time of this writing we are waiting the earnings results which may determine which way we break.

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