A bit weak flow to start the day, there were a few calls but there are also good amount of puts now. We're mostly at even now - we want to see a direction here.
Net prems are about 0. Let's wait for a clear direction from the flow side.
Not the time to get any calls right now. Puts leading.
I'll also wait before getting any puts right now. There's some support at 419 based on a few AVWAP levels. Let's cross it first before we get puts.
A user had noted that it is important to look at the entire market's flow to gauge $SPY & $QQQ direction, not just their individual flow.
That's a good point, and we now have a command for it.
tr-algoflow MARKET
tr-netflow MARKET
cont.
How do we calculate this?
We basically sum up algoflows/netflows for all stocks + indices and chart them against $SPY. There are a few considerations here that we'll test for the next few days. But this is the new default for gauging market direction now.
A couple of questions that I have yet to answer.
1. Should we remove QQQ, SPY's individual flow from this? Right now we don't 2. Should we keep TSLA? Right now we remove it because it messes up calculations because of its dominance. 3. How to best use it? we'll learn together
After a while, we are finally touching very important support levels (resistance on inverted chart here).
1. AVWAP from October 2020 lows on $SPY 2. AVWAP from March 2020 lows for $QQQ (very important level) 3. Weekly MACD curling down.
4. Bullish seasonality from April onwards.
All these signs are generally bullish, so I'd hope we actually stop going down here and can slowly reverse. If we break these levels, we'd obviously expect easier movement to the downside.
For swings or longer term trades, we might have good entries right now (given we don't break these levels)
For day trades, just follow the NET FLOW charts, they have bee working very well, especially for $SPY