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Tae's Corner: SPY - Jan 14, 2025

In Tae's corner, we share small snap shots of advice and wisdom from BigShort's founder, Tae, that he often shares in the Tutoring channel of our Discord community.

The screenshot below was captured in BigShort's v1 interface; the setup and mechanics it shows are unchanged in today's app.

A BigShort v1 chart of SPY on January 14, 2025, with handwritten annotations calling out shadow bars, Net Options Flow, and Dark Pool signals, and Smart and Momo dials in the top corner

click the image for a bigger view

Applying BigShort's Indicators to Trade Profitably​

Early Morning Rally Setup​

  • After about 30 minutes of declining price, **three largeMomoFlow (momo) bars **pointing down act as an inverse indicator that price may start to rise. (bullish)

  • This is supported by the biggest spike of the day so far in call buying. (bullish)

  • Execution: Traders could have entered long positions at this confluence of signals taking profits at any time within the following 15 minutes until the large momo spike upwards shows up (bearish)

Midday Rally Setup​

  • Over the course of the morning, price continued an aggressive downward trend until stabilizing for 30-40 minutes

  • Then price began to work upwards, crossing the MA20 and retesting it as support (bullish)

  • 20 minutes later, price crosses VWAP (bullish)

  • This coincides with the largest Dark Pool of the day, appearing below the public price (bullish)

  • This confluence of indicators is further supported by NOFA trending up during that timeframe (bullish)

  • Execution: Traders could have entered long positions, confident in upward price movement supported by price action and BigShort indicators. With BigShort, traders could confidently ride this trade all the way up until a huge bronze sweep indicates bearish unusual options activity followed five minutes later by a massive NOF spike showing large put buying and call selling (bearish). This confluence of indicators perfectly calls the top of this run and shows BigShort users when to exit this trade.
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