Huge gap down in the market makes for tough trading on Friday

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  After being whipped out of my short trade in WFC and taking a full stop I was finally able to find a winner in QCOM.  QCOM made my list as a Tier II could be a Tier I mortgage style gap play but I decided to get tangled with WFC which had a very similar looking gap.  I had been stalking QCOM all morning long for a short entry which finally came as lunch was beginning and I passed on the play only to watch price drop like a rock.  Price fell so fast and so far I began stalking QCOM as a possible climatic play to the upside aka a CBS.  I watch as price finally bottomed without much volume so I just continued to watch as price went sideways on low volume.  I noticed QCOM may have finally bottomed giving the appearance of a Pristine stage 1 price action on the 5 minute chart.  Within just a few minutes before the end of lunch time @ 2:05 I noticed a green breakout bar to the upside in QCOM.  I waited for the bar to close sold and then I waited for another 4 minutes before deciding to enter above the prior wide range green bar.  I then zoomed down to my 1 minute chart and watch price action pull back toward my stop out area only to recover as a clear trend change had occurred, feeling confident I doubled my share size.  Price then ground its way upward hitting my first target of .47, my second target of .57 where I sold 1/4 of my shares.  My next target was .67 but as we were heading into the last 20 minutes of trading for the day and I was already up 3 risk units I took my final shares off the table @ .64 cents.  A great trade and a great way to cap another profitable week on Friday.

QCOM 07112014
QCOM 07112014

     

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