03/10/2016 Live Update

[Cobra]

this actually is the 2nd leg I mentioned earlier. didn't think it'd go down this much. this bear probably still has legs.

[Daniel]

. . .

[nikman]

Thanks Fehro. But how to interpret this $2 difference in price between the VWAP and the actual price of SPY in the 1st half of the day. Does this mean SPY will catch-up with VWAP (by rising a bit, while VWAP comes down a bit)? Or will the difference in price just grow larger on a day like this?

Daniel (or anyone else on this board),

Need to understand the implication of difference between the VWAP and actual trade price of SPY. Yesterday Daniel commented about the VWAP of SPY. I read the definition, but still don't understand what it implies. The VWAP on Cobra's 5-minute chart on SPY is around 199.70, while SPY is trading at 197.75. What does this mean? Thanks.

fwiw...

VWAP gives the typical price of a stock (so far in the trading day), based on price moves and volume. It’s an intra-day indicator, starting with the first period (based on chart time frame chosen) of the day, and ending with the last. VWAP doesn’t provide trade signals like many other indicators; it’s an analysis and benchmarking tool. As the day progresses the VWAP begins to lag more and more. Therefore, retail traders find it more beneficial early in the trading session, and institutional traders find it more beneficial toward the close.

http://traderhq.com/trading-strategies/ ... age-price/

[q2model]

Come on.. one more nice drop.. just ONE drop for me dammit......

What are downside p-bars? thanks

[Trades with cats]

Nikman
Volume Weighted Average Price. As opposed to Average Price or Exponential Average price (Cobras little blue line). VWAP is what the brokerage algos use to break up large orders, i.e we will get you out over the course of the day at VWAP or better.

[Daniel]

Excellent response, Fehro.

Just want to add, the TACTICAL significance of this VWAP level is that it's a kind of "no-brainer" price point for big institutions. They often transact, at the end of the day, at the "VWAP" price fixing... it tends to be a "representative" price for the day.

[fehro]

Come on.. one more nice drop.. just ONE drop for me dammit......

red line for the red theme..

[nikman]

Thanks Daniel and TWC. So this means that we "may" have a small reversal close to the end of the day because the price difference is so large (2 dollars)?

Nikman
Volume Weighted Average Price. As opposed to Average Price or Exponential Average price (Cobras little blue line). VWAP is what the brokerage algos use to break up large orders, i.e we will get you out over the course of the day at VWAP or better.

[Jennyahwu]

it is latest pbar for today? thanks

[Cobra]

members only update at 1:04 pm
http://www.cobrasmarketview.com/2016/03 ... ay-update/

[Daniel]

Thanks Daniel and TWC. So this means that we "may" have a small reversal close to the end of the day because the price difference is so large (2 dollars)?

No. There is no "predictive" value. However, that level is where the largest volume of buyers transacted, so it represents overhead supply (if price is below).

That is meaningful, but not "predictive".

Feel an overwhelming need to watch NCAA basketball, and so must go. Hope above helped. GLTA.

[fehro]

Thanks Fehro. But how to interpret this $2 difference in price between the VWAP and the actual price of SPY in the 1st half of the day. Does this mean SPY will catch-up with VWAP (by rising a bit, while VWAP comes down a bit)? Or will the difference in price just grow larger on a day like this?

Check the link for more depth.. http://traderhq.com/trading-strategies/ ... age-price/

VWAP starts at the open price, and then moves up or down based on price movement and volume.
VWAP eliminates much of the noise seen in a stock throughout the day, even more so than a moving average would. At the start of the day the VWAP is more sensitive to price moves, but as the day progresses it becomes less so. This is because it’s based on cumulative values, so as these values get larger toward the end of the day, each new piece of data has less and less effect on the VWAP.

When the price is below the plotted VWAP values the trend is likely down, or there is a downward bias to the trading day. Institutions looking to buy will often try to buy when the price is below VWAP, as they are able to accumulate a position at a better than typical (VWAP) price.
Short-term traders usually do the opposite, interpreting the price below the VWAP as bearish, and looking for short positions.
When the price is above the plotted VWAP, the trend is likely up, or there is an upward bias to the trading day. Institutions looking to sell or short will often try to sell when the price is above VWAP, as they are able to accumulate a short position or dump shares at a better price than what has been typical so far in the day (VWAP). Short-term traders usually do the opposite, interpreting the price above the VWAP as bullish, and look for long positions.
VWAP is a guide and a source of price information that reduces market noise. It does not provide entry signals, stop loss levels or target prices.

[MrMiyagi]

What are downside p-bars? thanks

SPY $196.35 & $193.59 from March 1st.

[MrMiyagi]

what is latest pbar for today? thanks

Today's 2 SPY pBars point up to $199.43 & $200.38.

[nikman]

Yes, it did. Thanks to you and Fehro and TWC for responding quickly.

Thanks Daniel and TWC. So this means that we "may" have a small reversal close to the end of the day because the price difference is so large (2 dollars)?

No. There is no "predictive" value. However, that level is where the largest volume of buyers transacted, so it represents overhead supply (if price is below).

That is meaningful, but not "predictive".

Feel an overwhelming need to watch NCAA basketball, and so must go. Hope above helped. GLTA.

[Al_Dente]

Oil bounces. SPY. Does. Not. Care…

[Al_Dente]

who is getting hardest hit
$OEX:

[MrMiyagi]

QQQ testing 50sma second time. I say it holds intraday.

Disclosure; I own puts in that bastard.

[fehro]

Lunch time over.. martini infused rally

[q2model]

What are downside p-bars? thanks

SPY $196.35 & $193.59 from March 1st.

Thanks, it would be nice to get $196.35