Monday, October 12, 2009

Monday Notes - Jellie Dictionary

As the live Jellie trading tanks have evolved, our traders have developed a rather unique version of "Jellie shorthand" which allows us to describe and communicate various market conditions via audio or text with ease in such a way where all immediately understand the conditions.

Here's a sample of some of our "Jellie-isms", using today's market to provide some examples:

"Air on XX" - Reflects the fact that price is stretched on the stated timeframe ("XX") such that visual "air" exists between price or VIX and defined trend support. Example: "Air on 60" is shown on the attached chart (click to enlarge) and provided room for the market to trade out of its 2pm consolidation breakdown toward its hourly trend support. The result was a strong visual guide for potential short profits, as well as caution flags on early long fades prior to a reversal trigger on a lesser timeframe.

"SOOT" - Stay Out of Trouble mode. Reflects conditions reflective of minimal trading opportunity. Example: Today's 11:00am - 2:00pm consolidation chop.

"SOH" - Sitting on Hands. Describes what most Jellies are doing while "SOOTing".

"NML" - No-Man's Land (with apologies to our female traders). Reflects an "efficient" market that is trading mid-range where minimal opportunity exists for wholesale entries and subsequent profit potential. This is often best defined by our 1500 Tick Range chart per the attached.

"3LB" - Three Line Break. Reflects one of our trend detection and turn signals. Primarily used on a 1-minute basis, it's often an oustanding "SOOT" indicator during extreme trends to avoid premature reversal attempts. May times, a simple "3LB" reference in the tank alerts us that the turn signal has triggered.

"PJO" - Prime Jellie Opportunity. Reflects those 1-3 trades sought over the course of the day that reflects the highest probability and opportunity to profit. Reflects our moment-by-moment mission to find our three solid meals for the day. Example: the 1-Minute 3LB turn at 2:50pm provided a trigger for those trading long in line with the 60-Minute trend after the "Air" in the hourly chart had disappeared.

"IIAGD (or IIAGU)" - If It Ain't Going Down (or Up) conditions. Reflects the current path of least reistance, often defined by bull/bear tails and traps indicating trapped longs or shorts whose exits will help fuel price movement in the opposite direction.

"IFT" - Inverse Fade Theory. Reflects some of our traders' desire to ride the immediate short-term trend during times when we issue "No Fade" warnings, as is often the case late in the day when we warn of potentially disastrous late-day fade entries.

"DMI" - Don Miller Indicator. Coined by the first Jellie team to reflect my general interest in trading current market conditions. A low value often coincides with SOOT and SOH conditions.

Like a Tom Brady to Randy Moss wink at the line of scrimmage, such Jellie shorthand allows us to quickly communicate conditions and/or our current trading intent quickly and efficiently, while enhancing -- rather than distracting -- trader focus.