The market (QQQ) opened up neutral today and rallied up to the high of Wednesday’s afternoon base and triggered a sell setup at 9:50 am. The market basically sold off the rest of the day with every pull back to the declining 20 ma was sold off and a new lower low was made. We call this a trend day and it’s not a normal event in the market which can at times, make it very difficult to navigate. Normal market behavior is when we make the markets high or low for the day by 10:00 am or 10:30 am and or make the markets daily low or high by 10:30 or 11:00 am which are the daily reversal times in the market. When the market goes in one direction all day, this is not normal, and a rare occurrence. I really did not have a great short but I did have a great gap play in QCOM which gaped over a nice solid red bar from yesterday gap down. Today’s gap even gaped over the last high pivot area of QCOM which creates a shock gap. I took the first 2 minute buy set up which stopped out several bars later. I decided to pass on attempting further setups, in fact, I believe all buy setups eventually failed today in QCOM with price action finally rolling over near the end of the day. Here is the chart on my play in QCOM…
QCOM