Originally Posted by
Maxtrade
Yeah agree. Question the authenticity of some of those holding trades around 41-42.5 though. Probably substantial amount being used as a prop. Once profits start being pulled, reversal breakdown keep an eye out for those bids rapidly being pulled might see that buy depth disappear pretty darn quickly there. Miss out on profit gains once that happens as once brakes through 41.5 will then likely see rapid retracement to mid 0.3 range. Which would mean missing out on 25% profit gains from current level. Only $100k sitting there available at or above 41.5 level. Not much on the scale of things. Will only take a few larger profit pullers to come in, ie a few hundred k cashing out their 100% gains and next thing SP will likely be sitting right around 0.3- 0.34.5 range which will be sitting comfortably right around 61.8% FIB retracement from this rally, very likely.
If today reaches hitting another 10% gain that will be the cream on the crop, traders will def pull at that point after 3 day double digit gains. Look for the sell down once (if) 10% reached today. May happen swiftly so be on your game. They will be sitting with their sells on the trigger, nerves of steel the larger traders, as they know they can swing the market with a few sizeable sells. Building up enough bid volume to actually buy at the level they want to cost average at on their sell. Starting to get pretty good volume on the bid side to hold a couple of hundred k sells and still get their cost average price around the 0.40 mark (reaping 100% plus gains).
Sorry to expose trading plays for those larger traders out there, but hey it's only fair that the smaller guys understand how it all works and the influence and reality of how this plays so they can follow suit and make some money as well. It's not all about the big fish, would like my kids to have this knowledge and understanding rather than struggling, wouldn't you? ;)