Tuesday, April 7, 2009

04.07.09 - Between the Gaps


After gapping down -1.6% (SPY), price is now in a sort of no man's land between yesterday's close and the April 1st/2nd gap. Internals are moderately negative, and yet price has held its own between S1 ($82.60) and S2 ($81.55) with a slightly upward biased VWAP. Hard to say if that's actual buying, or short inventory from yesterday's post-recovery close being taken off for a profit. However, it has really been a lateral move from the open -- we'll see if this can continue to hold or even recover. At the time of this posting we are just under the VWAP with vacillating internals.

The experimental chart above is updated in realtime by BestFreeCharts, check it out (orange line is VWAP)!

10 comments:

vivek said...

Cool chart!

Ken said...
This comment has been removed by the author.
Ken said...

It seems to me that VWAP is all the "buzz" on many of the newest blogs that I follow! Is this something new?
I've been trading over 10 years in my own little space and never dealt with it? Thanks

Jeff Pietsch CFA said...

Hmm, maybe for retail traders. It is important for institutional traders because they often place VWAP orders so they don't have to time entry to a given intraday bar. Thus, it becomes a bit of a magnet. It is nothing more than price time volume for that bar. This blog has referenced for last two years. Best, Jeff

Jeff Pietsch CFA said...

That answer was a bit broken up!

Anonymous said...

ie

http://marketrewind.blogspot.com/2007/11/last-hour-breakdown.html

;-)

Ken said...

OK-Thanks-
I need to get out more!
So much to learn..enjoy your posts.

Anonymous said...

Trying this link out on your blog-
Back to VWAP as you said

http://www.bestfreecharts.com?emailChartID=ab15de2a-a782-4755-8d3a-06e2c90a37ab

Anonymous said...

New trader here. Still learning. When you talk about internals, what do you look at? I track AD, tick, and vix intraday (very helpful) as well as vwap and pivots. Thanks.

Jeff Pietsch CFA said...

Here you go Anon:

http://marketrewind.blogspot.com/2008/07/anatomy-of-day.html

http://marketrewind.blogspot.com/2008/10/trading-tick-ad-line-convergence.html

Hope thoses posts answer your question.

Best, Jeff