Chop or Drop?

23 thg 4, 2020

Indicators show start of a down move. Ultimately, price action will determine the move. I am seeing futures drop a bit tonight. Perhaps a test of the 273 area again? Maybe even 271? At that point, we will see if we move up to chop around in 271-295 area or break 271 and go down for tryst with March lows and below. Stop at today's high.

I have started to see some violent "flash crash" type selling. The programming of the algos may be undergoing a change. Short bursts here and there as if to test things out. Maybe in preparation for next move. Also seeing lots of algo vs algo action where the price does not move but the volume keeping shooting up on the bar as algos face-off (buy vs sell). They are off alignment :-)

I see algos as blessing in disguise for the human trader. As a programmer myself, I can assure you, algos are predictable. Artificial intelligence/machine learning is pure kool-aid. Basically, using brute force to crunch data and discover patterns in them and apply those patterns. Humans can catch these patterns after a while without even thinking about this. The machines will never be able to invent, dream, discover. They don't have ability to distinguish between good/bad/evil. That is the human edge. The markets were difficult to trade earlier as it pit a human against human. Fear, ignorance, luck, bravado, which made trading difficult and idiots look like genius. The only edge algos have is speed of decision and execution. Bah...