A sudden move higher marking the end of a decline.
First thing in the morning we have a decline and there is some fluctuation with a downward trend in the pre-market. Then we have a move off of a day’s low first thing in the morning. That move creates the day’s first high and then that will pick up steam and momentum moving into the 11am hour. It looks like there is a trade opportunity right at the open. If I am still holding any puts that I didn’t sell on the 28th, I will be selling them at the open on the 29th. The calls that I purchased on the 28th I will be selling at the close of the 29th. So we have volatility midday and a rally picks up steam in the midst of price swings. We drop suddenly between roughly 11am and noon. Some volatility increases as we move forward towards the 1pm hour. Between roughly 1pm and 2pm we have a notable move to the upside and we push to distant resistance. Our rally commences right in the midst of that volatility around 12:30-12:45pm. There is a big, notable move out of a trough to reach another day’s high at resistance towards the very end of the day. Then we fall sharply from that high at the end of the day, which is where I will be selling the calls that I previously mentioned.