To accomplish great things, we must not only act, but also dream; not only plan, but also believe! ~ A. France

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1 Fluidity Trader Chat Room w/cynthia E. - Wednesday, January 02, 2019: Page Begin Page End Chat Roll Time Wednesday CENTRAL Time Zone 6:30 *** Hello Fluidity Team Traders Welcome! *** 6:30 *** DAILY TRADE TIP *** *** To accomplish great things, we must not only act, but also dream; not only plan, but also believe! ~ A. France 5:41 forty1973: Good Morning Traders!! 7:33 JerryH: GM All 7:56 chicky527: gm all 7:56 MikeS: Good morning and Happy 2019! 7:59 DRich: Good Morning, Happy New Year! 8:00 tsurf: Happy New trading Year all! 8:01 Cynthia E: Good Morning Fluidity Team! 8:01 Cynthia E: HAPPY NEW YEAR! 8:02 Cynthia E: I hope everyone is ready for a great new year and has their plan in place to make 2019 a big success! 8:02 tsurf: Happy New Year Cyn 8:02 CRH: Good morning 8:02 Case: Good morning 8:02 MikeS: Good morning Cyn 8:02 Cynthia E: We are moving lower here this morning - let's get to the charts and look at the downside gap. 8:02 Cynthia E: GM guys! 8:06 Cynthia E: See Chart on Next Page: 1

2 8:06 Cynthia E: Here is the overnight histogram. 8:06 Cynthia E: We are net short, and price is set to open with a significant downside gap. 8:07 Cynthia E: Essentially, the overnight range created a "look above the YH and fail" or even a 'fail to look at the 2- day high and fail". 8:07 Cynthia E: From there, the market rotated all the way down to test the DOWNSIDE breakout from our 2-day balance range, and we are currently setup to open not only below the YL, but also below the 2-day low at

3 8:08 Cynthia E: So as usual, with inventory net short, we'll monitor for a short squeeze to rebalance the overnight inventory, but on any rally, we'll be watching closely to see if the 2-day low/ YL hold as new resistance (polarity), or whether we get re-entry back inside the balance which would then set the destination target for the 'opposite end of balance' (the YH / 2-day high). 8:08 Cynthia E: Remember balance rules come from price histogram rules. 8:09 Cynthia E: If we get confirmed resistance at the 2-day low / YL, then odds will favor more aggressive selling action back toward the retest of :09 Cynthia E: Because keep in mind that in addition to failure at the YH / 2-day high, the weakness is also signaling an inability of the market to take back which is the MOST IMPORTANT test on the board right now. 8:10 Cynthia E: Confirmation of resistance at essentially confirms the break in the long term trend. 8:10 Cynthia E: 8:11 Cynthia E: On 14400, we can see that we have been in a sideways consolidation which is the range of our 2-day balance. 8:11 Cynthia E: And we can see that the resolution of that balance was a DOWNSIDE break. 8:11 Cynthia E: Now we just need to watch and see if we get downside continuation, or if we continue to be rotational, and move back inside the balance. 8:11 Cynthia E: Let's look at 3600 and set up our numbers. 8:12 Cynthia E: See Chart on Next Page: 3

4 8:13 Cynthia E: The decline on 3600 makes it clear that we are opening in BEARISH stance. 8:13 Cynthia E: Price is trending below CL, the LT STO is down in strong bearish, and the ERG is below zero. 8:13 Cynthia E: We have a clear swing high for "re-entry" here, as well as a clear swing low for "continuation". 8:13 Cynthia E: Let's set our red and green lines. 8:14 Cynthia E: See Chart on Next Page: 4

5 8:14 Cynthia E: Here is the starting point 8:15 Cynthia E: RED = :15 Cynthia E: GREEN = :15 Cynthia E: And keep in mind that extension above the GREEN is still below YL so a move there is the SHORT SQUEEZE to adjust overnight inventory. 8:15 Cynthia E: Okay! 8:15 Cynthia E: Take the remaining 15 mins to review the reports and charts, and get set and ready to go! 8:29 Cynthia E: 30 secs 8:30 Cynthia E: Layla 8:30 Cynthia E: And we're off 8:30 Cynthia E: DO = :32 Andy: hardly 1000c each side 8:35 Cynthia E: Failure to squeeze up through our GREEN line 8:35 Cynthia E: Seeing some responsive selling action here now 8:36 Cynthia E: If anyone is watching volume on the ES Volumes page on the Fluidity Trader website, please just ignore the lower numbers in C through O for Today. 8:36 Cynthia E: The spreadsheet doesn't read a CLOSED day like yesterday, but the correct numbers are being filled into day over the top of the wrong numbers as the day will progress. 5

6 8:37 Cynthia E: Testing the 2-day low here again 8:38 Cynthia E: Mini - RED now = :38 Cynthia E: 2nd rejection at GREEN line 8:41 Cynthia E: We are seeing a good bit of indecision here in this opening range. 8:41 Cynthia E: And as Andy mentioned - DOM is a bit thin here this morning - so be cautious and on alert for rapid point moves. 8:43 Cynthia E: I am NOT counting as a new level or an raise in the Mini - RED line 8:44 Cynthia E: No LONG here so far 8:44 Cynthia E: Maybe getting the strong close above GREEN here now 8:45 Cynthia E: There was the strong CLOSE above 8:47 Cynthia E: Just now starting to make the pull back toward the LIS for better entry location. 8:48 Cynthia E: I did not quite get filled - I was looking for 76, and it never picked me up 8:48 Deni: 1 8:48 MikeS: Same here Cyn. I had my limit order at 76. 8:48 tsurf: nice going Deni 8:49 Cynthia E: Well done Deni 8:49 Cynthia E: Thumb's up 8:49 JerryH: Wtg Deni 8:49 MikeS: Good job Deni 8:50 MikeS: 3 selling tails after the closing candle. Buying weakness. 8:52 Cynthia E: Missed the gap fill by a few ticks 8:57 Andy: time change 3m 8:57 Cynthia E: Mini - RED still at , CL has not yet caught up to :00 Andy: see if they trap long inventory above here on time change 9:02 Cynthia E: Mini - M top reversal pattern here 9:04 Cynthia E: All action this morning is 'old business' so far - simply the adjustment of overnight shorts. 9:04 Cynthia E: We haven't yet had signs of strong 'new buying'. 9:05 Cynthia E: There was the strong close above :06 Andy: +4 off 80, quick shorters got squeezed 9:06 tsurf: great job Andy 9:07 Cynthia E: Fantastic job Andy! 9:07 MikeS: Great job Andy 9:07 JerryH: Wtg Andy 9:07 Cynthia E: Once again the close extension was a bit far for me - was looking for the LIS pull back for entry. 9:07 Andy: mini m head fake 9:07 Cynthia E: GM Krug 9:07 tsurf: Good looking happy face to start the new year :-) 9:08 Krug: Good Morning 9:09 Andy: if auction can close above 88, might attract some STF long players 9:10 Cynthia E: Yes - now we have some confirmed 're-entry' into the balance and YL / YH range. 9:10 Andy: overnight shorters feeling the heat now 9:10 Cynthia E: If the day continues to rally - we might get a bullish outside day approaching the retest of :20 DRich: New green at 2492? 9:20 Cynthia E: Not just yet 9:20 Cynthia E: The pull back needs to be a bit more substantial 9:20 DRich: k 9:27 Andy: time change 3m 9:27 Cynthia E: Now you can see why I was saying not quite yet on the /92 area 9:27 Cynthia E: Now we have a small bull flag zone, and we are developing a GREEN line at :28 DRich: That's the mark I was looking at... 9:28 Cynthia E: Take notice here as well that A/D is just now approaching the BOTTOM side of the zero line, and that Breadth is just now testing to go positive. 9:28 MikeS: breakout swing low on holding polarity 9:29 Cynthia E: Meanwhile price is still below Monday's POC. 9:29 DRich: But what do those two double tops do to the Green line? Don't they break it at ? 9:29 Cynthia E: The GREEN line is now at

7 9:29 DRich: Right, which could limit profitability on a trade... 9:31 Cynthia E: Not sure what you mean by 'break it at ' DRich 9:31 Cynthia E: A double top is a possible reversal pattern with the NECKLINE at :31 Cynthia E: However, CL has not caught up to that level, so it is not a short we would take. 9:31 DRich: The two candlesticks... 9:31 Cynthia E: Otherwise the pattern is just a bull flag with the GREEN at :32 Cynthia E: You still just need to watch candle BODIES not the highs/lows of the candles. 9:33 DRich: Hmmm... 9:34 Cynthia E: 9:34 Cynthia E: Here are the updated levels DRich 9:34 Cynthia E: We couldn't trade SHORT at due to the violation of Rule 1 9:35 DRich: Weird, I have two candles with the tops of their BODIES at :36 DRich: Ok. 9:36 DRich: Still haven't got Infinity data for Sierra charts, so relying on TOS :-( 9:37 Cynthia E: You'll always have a discrepancy using different data. Internet speeds can also affect it slightly. 9:37 Cynthia E: Oh. TOS is VERY wrong. 9:37 Cynthia E: They do not account for the CME's MDP 3.0 data change. 9:37 DRich:??? 9:37 Cynthia E: CME choose to bundle data several years ago. 9:38 Cynthia E: It was called the "MDP 3.0 upgrade" 9:38 DRich: Ok 9:38 Cynthia E: However, each data company had to choose whether to UNBUNDLE the data back to a tick by tick status. 7

8 9:39 Cynthia E: We used to use esignal for data (instead of IQ Feed) - but esignal was one of the companies that decided to NOT unbundle (so was TOS). 9:39 Andy: 1 tic look into B period, possible bull signal 9:39 DRich: Interesting... 9:39 Cynthia E: So tick charts on futures (data coming in from CME) that has not been unbundled is extremely off. 9:40 Cynthia E: For example - our 3600 tick chart usually has candles when the data is tick by tick. 9:40 Cynthia E: If you look at the 3600 these days on esignal charts (unbundled charts) - the 3600 will only have about candles. 9:40 Cynthia E: That is how 'bundled' the data packs are now coming out of the CMe 9:40 Cynthia E: CME 9:41 Cynthia E: We stick with the BEST charting and BEST data sources we can find. 9:41 DRich: Ok 9:41 Cynthia E: For a reasonable rate. 9:42 Cynthia E: There is a slightly better data source out there than IQ Feed (I believe it is called CQG), but they charge $600 per month just for data last time I checked. 9:43 Cynthia E: I look for the absolutely MOST reliable data and charting we can find, that provides us an optimal level of accuracy in order to make our income without spending TOO much on the resources. 9:43 Cynthia E: Heads Up! 9:44 Cynthia E: Testing here now 9:44 Cynthia E: RED line now = :45 Andy: 3x top here 9:46 Cynthia E: No CLOSE above thus far 9:49 Cynthia E: No LONG here yet 9:50 Cynthia E: One bar closed with a few ticks above 92.75, but it had a strong topping tail, and the next bar traded immediately back below the LIS. 9:50 Cynthia E: Waited to see how it played out, and turning back toward the bearish side. 9:51 Cynthia E: GREEN line adjusted now to :51 Andy: picking pockets here 9:52 Cynthia E: Indeed 9:52 Cynthia E: Internals have managed to push into positive territory here today 9:52 Cynthia E: This extension in D is working toward the resistance test at Monday's POC 9:53 Andy: guess there was few stops there :54 Cynthia E: BOOM! at :54 Cynthia E: Entered on the pull back at :55 JerryH: wtg cyn 9:55 Cynthia E: Thanks 9:55 tsurf: wtg go Cyn! 9:55 Andy: well done 9:55 MikeS: Good job Cyn! 9:55 DRich: wtg Cyn! 9:55 Cynthia E: Thanks guys 9:55 tsurf: that's the way to get the New Year kicked off ;-0 9:55 Cynthia E: :) 9:55 Cynthia E: Tough market today. 9:56 Cynthia E: As Andy has mentioned - upward drives definitely being dominated by trapped shorts getting squeezed, and each extension up is being met by quick responsive sellers trying to recapture gains. 9:56 tsurf: ^ that was a smiley 9:56 Cynthia E: I certainly wouldn't rate today's action as 'confidently bullish' 9:57 Andy: time change 2m 10:00 Cynthia E: Alright! 10:00 Cynthia E: It's about that time! 10:00 Cynthia E: Let's look at our final summary charts. 10:00 JerryH: Thx Cyn 10:02 Cynthia E: See Chart on Next Page: 8

9 10:02 Cynthia E: Here is our 3600 review. 10:03 Cynthia E: We started with the RED at the ONL swing low, and the GREEN at the ON swing high. 10:03 Cynthia E: The first long was the CL Break Long on the extension above that overnight swing high. 10:03 Cynthia E: But we didn't quite get a full pull back to the LIS right there. 10:04 Cynthia E: Then we got a bit of a bull flag consolidation that created a more solid GREEN at 92.75, but the initial breakout there was weak. 10:04 Cynthia E: So that adjusted the line to :04 Cynthia E: Then we got the nice full breakout with pull back to the LIS on the Continuation. 10:05 Cynthia E: See Chart on Next Page: 9

10 10:05 Cynthia E: On 3600, we have balance re-entry. 10:05 Cynthia E: We started with a downside gap. 10:05 Cynthia E: We never got downside follow through. 10:06 Cynthia E: Instead we slowly worked toward the gap fill, then we re-entered the 2-day range, and the YL/YH range. 10:06 Cynthia E: Thus, the destination targets are now the YH and 2-day high. 10:06 Cynthia E: It will be interesting to see if it makes it today given the short squeeze nature of the rally, and the responsive actions at each extension to a new HOD. 10:06 Cynthia E: Thanks Jerry! 10:06 Cynthia E: That's a wrap! 10:07 Andy: thx Cyn 10

11 10:07 DRich: Thank you Cynthia! Happy New Year everyone! 10:07 tsurf: Have a great day Cyn :-) 10:07 Cynthia E: Thanks guys! 10:07 Cynthia E: Yes - we are back! And the NEW YEAR will be a good one! 10:07 Cynthia E: HAPPY 2019 Team! 10:07 Cynthia E: I will see you all back here tomorrow for another GREAT day! 10:07 Cynthia E: Adios! 10:08 MikeS: Thanks Cyn 10:14 Andy: lots of high tics, some were leaning the wrong way 10:21 tsurf: just a tick below YH 10:23 Andy: right to the tic yday HOD = STF players 10:35 Andy: 1 time framing higher intact so far 11:39 tsurf: taking off, great day to all and nice job again Andy :-) End of Chat Roll for Wednesday, January 02,