đłThe Tuesday YEET: Looks Like We Have a Cure for Chop in Phase 2
Extra Extra REEEE all about it! Paper's here!
đŞRefresher on last night: Man vs. Chop
Essentially yesterdayâs SPY section was about my attempt to figure out how to a) know definitively youâre in chop and b) determine how prolonged it may be and c) how to play the interim.
We determined that the entry ways often get set by long, solitary wicks (another hint is they resemble symmetrical, mirroring flags initially )
Price Action continues those wick pivots in a contracting and expanding wave pattern until there is a breakout to the upside or a breakdown to the abyss.
But now, for the back half of the chop to come, we have what we hypothesized would be perfect levels for the back half. We used BLUE lines for the body stops on our wick candles, and yellow at the wicks.
What we found on the other end yesterday? Perfect Price Action.
The previous levels from our chop range have clearly set the defined movement range, and there were more Price Action goodies to come.
Were you surprised at that drop we saw yesterday? If youâve caught any of my rants about how fundamentally powerful the Price Action Gap is youâd noticeâŚ
We turned around at a previous Gap Entry level to the button!
So where to? Weâve got out cute little chop theoryâhow we gonna play the chop?
Although we technically can go either way, I see the PA rejection at the top as a signal weâre testing the bottom (pink flag icon) one more time.
đ§ Bonus note: watch the wicks at these levelsâtheyâre doing a ton of fake outs. If the first fifteen minutes of the hour looks like doomsday on a level break, itâs likely the opposite.
PS: these arenât huge but context matters. I never see SPY on The Peopleâs Screener:
đCVNA Update: This is the best real time Bull Trap 101 You Could Ask for
So CVNA ripped, therefore it should keep ripping right? This is a steal!
Na, son Exhibit A: Notice where we went to and wicked offâthe vaunted 200 level. Flag setting often looks violent to the opposite side of movement; if it didnât nobody would ever get caught off guards and would instead say âwhat a flag set they had!â instead of âwhat a ripper!â.
Plus they rejected a consolidation range:
AND created their own damn downside gap to fill:
The Flow: Again, flow is all about context. The CVNA flow was about 50/50 bear to bull on the filters, but CVNA during a ripper is usually obscenely bullishâhell, even when itâs NOT on a ripper.
The 75p is picking up steam
đłYEET Plus Flow Section: I found a pair of Pocket Rockets and we just need an Ace on the flop.
These are going to be high Octane weekly callouts when we get the bounce of all bounces after the drop of all drops.