I did not expect much from this 2nd to the last day of 2014 in the market but the QQQ opened the day gapping well below the last prior pivot low of 104.87 to open the day @ 104.73 where by breaking the 60 minute uptrend in the QQQ. When this happens you must take the first 5 minute sell setup the triggers in the market. Now nothing is 100%, but the odds are in your favor, so when the QQQ triggered the first 5 minute sell I was all over it and entered my play at 104.82. I was a little cautious, but price action soon confirmed the 5 minute sell and price sold off in a flurry lower. For 2015 I’ve decided that I’m not allowed to take profits until three risk units of profit have been made, for example, if I’m risking $100, I must be up $300 in order to take any profits. I had a $.19 cent stop on my Q’s play and so I was looking for .57 cents of profit before I would sell a 1/3rd of my shares. Just after lunch my play in the QQQ’s hit 3 risk units and I covered 1/3rd of my shares @ 104.24. I covered another 3rd about 20 minutes later as the market seemed a bit tired selling off. I soon covered most of my shares at 104.24 but I left a few on for the next 5 minute pivot for a possible Add and Reduce play. 30 minutes later I found myself adding more shares short and reducing my stop to 104.47. For a while it looked like price may roll over again and head lower but this was not going to be the case as my stop was hit at 104.47. Wow, a great 3 R play…
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6 Responses to Gap down in the QQQ made for a great 5 minute short!