Thursday, October 29, 2009

How Precision Market Timing can help you to nail a High Gamma Trade

How Precision Market Timing can help you to nail a High Gamma TradeSocialTwist Tell-a-Friend
Fari Hamzei

If you saw my Twitter posts starting last Friday after the Close, then my Market Timing Commentary here on Monday Night and then culminating on Wednesday evening with more Twitter Updates, starting about 528 pm Central Time, you knew why I was HEAVY LONG SP-500 Futures (entry 1039) and small amount LONG Nasdaq-100 Futures (entry 1678), holding overnight and into Q3 GDP numbers this morning:

1) McCellan Osc readings for NYSE and NAZZ Markets
2) Down to Up Volume Ratio Spikes
3) Sigma Channels Reading for SPX, NDX, RUT and DJ Trans Indices
4) Put/Call Ratios (dollar weighted) for key High Beta Big Cap stocks
5) Vol of the Vols --- Sigma Channels readings for VXO and VXN
6) Intraday TICK Exhaustion Analysis -- on-the-run

This resulted in gain of 9.5 handles per ES contract on avg -- and max was 11 handles per contract. As you can tell from time & sales data, NQs were also very profitable.

Of course we traded post GDP release -- last long trade taken was exited at 2:57 pm CDT today at 1062 (per our HFT Tweeter Feed).

It was a glorious day and a great week so far. Hope you all enjoyed it. Here are our Timer and Vols Charts as of tonight's Close. Remember, tomorrow is another day and another battle. Go get some rest.


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