WLD This morning’s move is a bit interesting—on the 15-minute timeframe it directly dropped by 0.9%, with volume expanding to 1.49x.
After looking around, OI is contracting, and the contract notional has also decreased by more than 7 million U. This doesn’t look like the way new shorts enter to smash the market; it’s more like longs cutting losses and deleveraging. The aggressive trade imbalance has widened to -54%, and in the deep-water area you can clearly see people exiting with losses. Even the lows of the last 20 five-minute K-bars weren’t held.
Don’t rush to pick bottoms. After a breakdown following a low-volume, slow selloff, it often needs to grind a bit more. If you have positions, set your stop-loss levels. It’s better to miss the trade than to hold on—at times like this, staying alive matters most.
After looking around, OI is contracting, and the contract notional has also decreased by more than 7 million U. This doesn’t look like the way new shorts enter to smash the market; it’s more like longs cutting losses and deleveraging. The aggressive trade imbalance has widened to -54%, and in the deep-water area you can clearly see people exiting with losses. Even the lows of the last 20 five-minute K-bars weren’t held.
Don’t rush to pick bottoms. After a breakdown following a low-volume, slow selloff, it often needs to grind a bit more. If you have positions, set your stop-loss levels. It’s better to miss the trade than to hold on—at times like this, staying alive matters most.