The QQQ opened with a small gap up this morning just off of the Major Support area of 72.63 which happens to be our low for the day. Price powered upward setting the high for the day by 10:05 am @ 73.06 only then to roll back over and come within .01 cent of the low for the day before bouncing again at 10:40 am. The Q’s rallied into 11:05 am but could not set a new high before rolling over again to test the lows by 11:35 am when price started to head upward. We are definitely in a sideways pattern for now and I would wait for the market to make up it’s mind before taking a trade on this Friday afternoon.
QQQ 05102013
My play of the day came in MOS as a 5 minute momentum play lower. MOS was not on my list this morning, since I did not have any outstanding gaping stocks, at 9:33 am, I started to look for a nice wide range bar play with a void. I decided to look for a short since the market is oversold and likely to sell off at anytime. I found MOS rather quickly looking at a scan of the weakest stocks on my list. I had a pretty good wide range red bar with MOS that had made its way through the 200 ma on the 5 minute chart. The 60 minute chart just screamed “SHORT” with a beautiful void to the downside. The 5 minute chart had nice rail road tracks forming between the 20 ma and 40 ma’s which is a clear signal for lower prices. I shorted just below the first 5 minute bar and I was handsomely rewarded as MOS sold off hard until 11 am where I finally tailed out of my short play in MOS with 2 risk units of profit. Here is the chart for my short play in MOS…
MOS 05102013