QQQ anaylsis and stock picks for Wednesday, October 24th, 2012

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Longs:

CHRW – Daily buy triggered

HD – Daily Pivot I

HOG – Picture of Power

LLY – Daily COG – Daily buy watch

Shorts:

AXP – Daily breakdown at support

CELG – 1234 continuation play lower

MOS – Daily Breakdown at support

Today we traded sideways in a range from 65.95 to 65.19 and are sitting on the 200 day moving average.  The chart ended with a narrow body bar which means that the bottom may be near.  I’d expect a very similar day tomorrow since it is an FOMC statement day.  Once the announcement is made we could break higher or lower depending on the statement @ 2:15 pm EST.  My bias for Wednesday will be caution, the market may go either way.  If we gap up or go long at the open, I would be waiting for a higher low on the 5 minute chart before entering long.  I would be looking to sell in the area of 66.20 area where traders will be shorting a 15 minute sell set up at or near 10 or 10:30 am reversal time.  If we rally through this area, I’d be looking for the next hourly sell in the market at or near the 66.50 area.  The Q’s would have to gap below the 65.00 area before I would want to consider playing the first 5 min sell with the lower target at 64.24.   

qqq10242012
qqq10242012
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