I was watching that all the way to close.....

Ok, here is my analysis on today. I waited until the end of the day to see if I could pull it out and it wouldnt roll over. Lets take a look.

Now as you are aware, I blogged that I found a pattern that the premarket tended to be a sparkline for the open day coming up. You can look back over the last two days and see that post. Now for today:

It didnt really follow. Or did it? I was having some problems following live time. Do you see right to the right of the day chart the morning gap that I circled? I thought that was still a continuation of the gap, and I was looking for things to drop like in the spark-chart looking premarket.
In order to correct this, I am going to set a hardline time that all gap fades are done 40-45 min after open. If I had looked at it from THAT perspective, I wouldn't be waiting for the gap to drop further, instead I would have looked toward the next peak, even if it were a bit lower. Also for now, its looking like afternoon trading is dangerous as the sparkline (premarkets) arent particularly following the line after 1pm to close. Unless of course the premarket sparkline opened down from the previous days close. Then there tends to be a drop.

This is a work in progress. But I think once I snap the sheets taught this is going to purr. Stumble with me for a few days next week, and once I got this, well then, I think Ill really have something that you'll want to forward to your trading friends.

So..40-45 min after market open the fade is finished, and I should look to the next peak/valley for support. If I see a peak in the sparkline afterwards, its buy a call. If I see a dive in the sparkline, the opposite, especially if the premarkets were lower than previous days close. Complicated, but hammering it out. Have a good weekend.

Tradinginsider