Longs:
LLY – Gap continuation
Shorts:
RIG – Climatic watch
The market tested the highs for the day in the QQQ during lunch and again late in the day at 3:30 pm but could not break the 66.88 area of resistance. We are still in a sideways trading range but with the price action on Friday, the top of the range has shrunk from the high of 67.30 area no to a new major resistance area of 66.88 area and the low area is still the same at 66.45 area. For Monday, I’m going to wait to see which why the market breaks before taking a market play. Hopefully I can come up with a gap play early that requires no help from the market. If the QQQ gaps below or trades below the 66.45 area I’d be looking to take the first base break down or 5 minute sell that triggers at or near 10 am reaction time with a lower target of the 65.30 area. If the market happens to gap above the 66.88 area and continues higher, I’ll be looking to take the first 5 or 15 minute buy in the market long preferable at 10 or 10:30 reversal time with a target area of 67.30. My bias for the day is leaning short but wait for the break of the 66.45 area…
qqq01052013