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Midday Update July 27th

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One of the most important things you can learn when watching ES tape is that different players come in during half hour increments. So structure can change in an instant as capital flows in an out of asset classes.

Today is a great example of that. Here's what I saw:

930-10: Boring open range

10-1030: Volatilty came in, made new highs, and then broke the lower range of the day.

1030-1130: Selling slows,then a rally

1130-12: Buying slows, a pullback

Half hour structures work because there are various markets opening and closing across the world and entities with much larger pockets than I need to rebalance their portfolios and hedge.

As of right now, I'm seeing that ADVN-DECN has failed to make a new high, and we're seeing more distributed extreme tick readings to the downside. That internal (TICK) is throwing warning switch for me, as it seems that while price is being supported, there are more people hitting the bid. It seems to me that some of the smart money is starting to exit.

So the stocks I'm following today are APOL SBUX DELL HOLX JOYG QCOM URBN. And a potential double calendar trade in SNDA.

by Steven Place

Steven Place is the founder and head trader at investingwithoptions.com/