Another great week of trading but I've had no time to post any of my plays so I'm playing a little catch up from last week. I'll start with my trade in the QQQ's which had gapped up and rallied all day on Friday so when price gapped down at the open on Monday, I felt that the Q's may sell off for the first few hours of the day. At the open, I had no immediate plays that warranted an immediate entry so I was left with the market. The Q's put in a spinner type bar during the first 5 minutes of trading. Spinners are usually very neutral type bars and when price breaks the low or high of this type of bar you will usually get good follow through in that direction. So I found myself attempting to short the bottom of the first 5 minute bar. Price moved lower nicely at first but 10 minutes later price rallied hard forcing me to cover 1/2 of my shares short. I could have killed the play but I still had conviction that the market would head lower. As the retest of the first 5 minute high failed price rolled back over and I added back the shares short that I had previously covered. I really found myself working this play but soon price began to chop and eventually I trailed out of the play. I made a few bucks on the play but overall the Q's did not sell off as expected as price began to rally over lunch and head higher...
QQQ 07212014