Overall activity was BULLISH .. Call sweepers actually started out a bit sluggish off the gap higher this morning but it wasn’t too long before a few bands of buying came in. Today’s order flow was definitely an improvement to what we’ve been seeing .. While it still fit the bill of a “sentiment squeeze”, there were some selective orders that looked like “real” buying in individual names.. We don’t want to make too much out of one session, especially one where the indices were all up nicely, but it’s a start. We obviously lose our edge off short-term sentiment off today’s rally as most readings finished the day a bit above neutral .. This is where the flow now takes center stage again & we get to see if buyers choose to get aggressive into any fades or pullback. Or, do I dare say, some real signs of possible sector rotation if the indices want to chop around a bit .. It really would be nice to not really on the indices everyday to make some money .. One way or another, we’ll likely get a read on whether this bounce off the recent low has further upside or sellers take control & test that level again .. I will say this, some names/sectors have taken some beating off this pull & a good chunk of em are already flashing bullish sentiment signals.


Monday’s overall flow was mixed .. Activity did lean bullish at times throughout the session but a steady flow of protection in tech seemed to sap out any potential momentum .. No big changes coming out of today’s session. Outside of a decent early morning squeeze off the open, it felt like the entire afternoon was a non-event .. Some signs of small bounce-Sweepers into the closing bell, let’s see if it carries into tomorrow’s session. Wiseguys continue to remain gun shy out there with almost all the bull flow showing up in smaller size spec bets in shorter-term strikes.. Quality order flow has been far & few in selective under-the-hood type names.. Sentiment was little changed off Monday’s action .. Short-term sentiment actually finished a smidge higher on the day, even with the indices ending lower. Likely had a lot to do with the strong bounce off this morning’s gap lower that scared the bears off from pressing bets. All in all though, this pullback has been getting the job done as far as giving bulls a much needed reality check. The best example of it shown in Sector Sentiment below .. Will post a quick video in the morning, especially if anything sticks out to me from tonight’s sentiment updates .

via Sentiment Trader