I had posed a question in the comments section in the morning today at about 9.45-ish, about the kind of day that awaits us.
We had a normal variation day today.
Such days are generally difficult to predict, as things can change a lot in the C, and D and E,F periods.
But I found something interesting on the charts. Have a look :
Today’s day was exactly similar to the day on Thursday.
An open above value, a move lower in the middle phase and a rip-off higher into the close…and a “b” shape again.
Those Open interest figures which I posted near the close testify to the “b” shape. Call writers were unwinding and most of it was flowing into put writing.
But there is another thing which I had mentioned on the weekend about such days.
Such days have generally a gap-up the next day and the highs of the day are made in the first ninety minutes of trade.
Again it is a general observation, not a rule written in stone, but we will put it to the test again tomorrow, like we did on friday.
Join me at the open to know…