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Gimme Back Day 5/23/24

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Yesterday was Gimme Back Day. That’s the day when Wall Street dealers collectively say, Gimme Back My Inventory!  They shake the tree. The low hanging fruit falls off. They pick it up from the ground and redistribute it in the morning at higher prices.

And if they like what they see, they’ll stop selling into the rally and let their big hedge fund customers who are short, get squeezed. Then it’s off to the races.

Is that where we’re headed today? Let’s take a look at the hourly ES fucutures for some hints. First a zoomout to the 2 hour bars for perspective. The trend is, shall we say, well defined. There are multiple uptrend channels at work here. Just to even break the centerlines, the S&P would need to be below 5325 at the NY close. That is also a spport level for the pullback currently under way as of 5 AM ET, which is 11 AM here in Yourope. So again, if they don’t break that, the biass is all to the upside.

The high base breakout measures to 5360.

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As for the usual 1 hour bar look, yesterday’s Gimme Back fit a pattern of 3 day cycle lows every 3 days of late. That suggests that today will be an up day. There’s a 2-3 day cycle projection of 5355. This afternoon, upper trend channel lines cluster around 5350-55. I wouldn’t bet against that, although I’m a sheptick about breaking through this. We’ll just have to see. Meanwhile, sit on your Can, hold your Water, and let go of your Gas.

I have been traveling for the past few days. Today I’m in the beautiful city of Torino Italy. I did not know that Torino was Italy’s 4th largest city, after Roma, Milano, and Napoli. When I got off the train, I could feel and see the hustle and bustle. Italians are like New Yorkers. They love to honk their horns, they especially love to drive through rain puddles fast enough to soak the people standing on the sidewalk waiting for the trams and buses. Ask me how I know this.

But I digress. Turin’s population within city limits is nearly 900,000, and it is incredibly dense, with 17,000 people per square mile. That compares with my hometown of Philadelphia with 12,000 people per square mile. San Francisco is slightly more dense, with 18,600 people, although I’m not sure if that counts the people sleeping in tents and doorways.

But I digress again.

One reason I doubt that yesterday’s Gimme Back is sufficient for a mewn lawnch t-day is that my trading screens continue to show narrow participation, which is more typical of a late stage move than a momo-a-gogo.  The first run through of the screens identifies charts with intermediate term trend setups that are propitious for a short term move. That identified only 49 buys and 52 sells out of the universe of 1348 NYSE and Nadsaq traded issues that meet my price and volume minimums. So there’s no real thrust here.

Then of those only 2 buys and 1 sell actually triggered yesterday. Slim pickins, but I’ll take a look to see if I want to add them to my trading port.

I was in front of my screen yesterday when the Gimme Back Came. Looking at 2 hour bars of the picks in my port, I liked what I sore, so I added massively, ok not massively, but I did increase the size of my holdings. Today sets up as a hold day. These buys are less than a week old. I will sell nor whine before it’s time.

And, Oh, one more ting. If this bad boy goes through 5350 by this afternoon, then we could be looking at 5400-5410 pdq.

From Torino, Italia, Cha oh for now oh.

14z2jc

For moron the markets, see:   

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