Hey everyone. This is what I came up with...

I have begun to map the sparkline and I am having consistent results so far from it. Remember the other day I told you the corresponding times...6:30 am ET to 11:00 and 7:40 am to 12:50 ET.

So what does this mean? Go to Yahoo finance and type in QQQ. Now select the 5 day chart (display times underneath QQQ graph.
Now, when you open the 5 day chart, it displays the last 5 days and the chart is interactive. What this means is if you hover your mouse anywhere in the chart, an X and Y axis appears allowing you to see the price at any given time of the day. Go ahead, move the mouse around on it. The x and Y axis follows the mouse pointer around like one of those old Etch a Sketches. Now, the first point, or 6am, is on the sparkline. In today's graph  go to this mornings sparkline.

You can see each days premarket in the chart above, marked with a 'P' and the Markets open day following the premarket marked 'M'. Todays premarket is the grey 'P' and the market day, the grey 'D'. Now hover your mouse over todays premarket so you see an x and y axis grid showing a specific time point depending on where you put up the pointer. In todays premarket area (the grey P) hover until you find the time 6:30AM. A screen shot of this is below:

This is the point on the physcial graph of the premarket (what I call a sparkline, or the entire premarket graph) where is is 630 am ET during this past morning. Now i note the position on the graph where this is. Now, I said that I found that 630 am corresponds to 11:00am on the day chart. So lets find 11:00 on the daychart and see where the graph point points. We move our mouse over into the day graph, carefully move it around until we see it say 11:00am:

Now that we have our two points, the magic begins. We can now feel out where we are in the day seeing the premarket sparkline and comparing it to the day graph. We can already see the entire "preday" in the premarket and now know that the daychart tends to follow it like an outline. However, it can be kind of hard to maintain a ratio perspective...thats why we are doing the above to see where we stand in the daychart compared to the premarket chart.
SO: at this point, I saw that the premarket climbed up. I then took note where I was in the daychart and saw what was coming. I bought a call and sure enough the daygraph followed the premarket chart. I then saw the premarket chart then dropped a bit, so I got in on a put and sure enough, there it went..dipping down.
For the end of the day, the premarket forecasted that the market would climb. So I got in with a call and BOOM. Did it ever. In a very exaggerated way in comparison to the prechart "sparkline".

I also use two other times that I use to see that I am still on track...that is 7:40 Eastern on the sparkline to 12:50 on the daychart.
This is going to require constant checking on a week to week basis to make sure the grid lines are still tight on each other and that there is no value shifting. If there is, I will adjust.

I am very VERY excited about this if this turns out to be a long term thing. Kind of like using a time machine and going back to yesterday before market open knowing what would happen that day and investing accordingly.

So thats it for tonight, see you tomorrow.

Tradinginsider