After a week off from trading I was a little cautious this morning and finally made my first trade at 11:44 am as the market was rolling over short. The QQQ gaped up slightly and sold off hitting the low by 10 am @ 65.04 and rallying for the next hour setting the high for the day at 11 am @ 65.51. Then the QQQ triggered a 15 minute sell setup at 11:15 and price action sold off hard into 1:00 pm EST. Currently we have rallied off the lows and have made a lower high at 1:35 pm and are heading lower. If we break the low we will confirm the 5 minute down trend, if we don’t it looks like we may be heading sideways for the rest of the afternoon. My only play was in GILD short, which I found during my 9:45 am scan for wide range bars, during the 15 minute sell in the market. Even though the markets short triggered at 11:15, I delayed my entry in GILD until 11:44 to confirm the move lower. Upon entry, I still had to sit through a small retracement but as the Q’s accelerated lower, GILD finally started to fall. I had a nice 90 cent void below with a .30 cent stop or 3-1 risk to reward ratio. I ended the play with a respectable 1 “R” gain on this relatively sleepy day in the market. Here is the chart for my short play in GILD.
GILD11052012