Longs:
HD – COG in the PBZ
HOG – COG @ R20ma
Shorts:
DIS – Gap continuation pattern
On Friday, the QQQ rallied up until the high of the day was set in at 12:30 near 64.11 and began to sell off hard breaking major support at 63.66 and moving to the next support level at 63.44 area where we closed the trading day. If we gap lower on Monday below 63.16 area, I’d be looking to short the first 5 minute sell in the market. If we happen to gap up you could look to take the first 5 minute long setup at or near the 63.50 area. These setups will be more potent if they occur at or near reversal times of 10 or 10:30 am. If we happen to open up neutral, wait for the break upward of the 63.50 area before looking for a 5 or 15 minute buy. If we open neutral and move lower, we really have little room to move lower before we hit the next support level, so, I’d be looking for a bounce near the 63.20 area for a long play in the market, wait for at least a 2 minute downtrend to end, better to wait for the 5 minute down trend to end and take a 15 minute buy at or near 10:30 am. I’m expecting price to trade from the 64.11 high and the low of 63.16 areas…
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