Range Everywhere

BlackBox Dollar Flow

Range Everywhere


Good day to all, and hopefully this week brought you trading gains galore! This week has been a range-fest, and day traders have enjoyed it inside our community. It also featured a dip down to the high $380s, relative to the SPY ETF, that swing traders and investors likely weren’t that wild about. However, the majority of the regular trading sessions this week on SPY featured large bodied candles with good amounts of range. And after all, if one is trading intraday, it is range that one wants.

The mid-week rally was unexpected to some traders and analysts because the Chairman of the Federal Reserve made it clear that his organization would continue to do what was needed to get inflation under control. Though this is often interpreted bearishly, the market began rallying on Wednesday and finished the week strong. Many analysts do not see the current macro situation as bullish. But regardless…rally it did. For many people, this was another display of the fact that the market will do what it does regardless of what we think it might, or should, do.


The aforementioned range was played both ways in our trading community this week. The Road House is a community inside our Discord Server that features more advanced trading techniques and a heavy emphasis on unusual options flow. The flow is called live in the Road House, and many of our traders utilize that service to play puts, calls, index futures and more. If flow can be combined with advanced technical analysis along with other trading bellwethers, it can result in powerful trading theses that profit well.

In addition to flow, many of our traders utilize dark pool trades and phantom prints. The latter term was coined by one of our in-house trader/moderators, and one of the things members enjoy about a membership to BlackBoxStocks is not only real-time dark pool trading data but education on how to interpret it as well. It is not enough to simply have access to an option scanner and other trading data if you don’t know how to interpret it and add it…or not add it…to your particular style of trading.

Speaking in terms of the SPY ETF, the low on Thursday was around $394.50 and by noon on Friday the price was hovering just under $406. This is a large price action range, and it is to be respected. Range like this provides great intraday opportunities for traders of options, shares, and index futures. When the underlying moves this much one way or the other, the delta of any option you have bought will shift drastically. And if you are on the right side of the trade, it will shift in your favor, amplifying your gains with the leverage that have made options such a popular tool in intraday trading. Of course, that famous leverage is also infamous in that it can cut the other way just as quickly. Therefore, along with massive profiting opportunities from the range this week there were also great chances to test your exit discipline. All traders make losing trades. Successful traders are the ones that learn how to quickly cut those losing trades to minimize losses and preserve capital.

Regardless, this week was a busy one in the markets and in our communities. I hope you have a good one, and thanks again for reading the blog!