The QQQ gaped up to 73.13 just above the prior 15 minute pivot breaking the prior downtrend but only to see price head lower as the Q's set the high for the day within the first 5 minutes of trading @ 73.14. The Q's set the mornings low @ 72.51 by 10:15 am but price had also move past the lower pivot set yesterday confirming a continuation in our down trend. Price rallied into 10:30 and triggered the first 5 minute sell setup at the declining 20 ma, then it was all downhill from here. Price sold off hard into 11 am then took a 30 minute break as price moved sideways into 11:30 am when price broke down again setting the lunch time low @ 12:35 pm of 71.99. Price rallied into 1:10 pm just getting above it's 20 ma on the 5 minute chart but got stuck below the 40 ma and priced rolled back over continuing lower. The QQQ set the low of the day of 71.74 @ 3:30 on this trend day lower and closed near the lows of the day @ 71.78.
QQQ06122013
My play of the day started as a 5 minute buy in HPQ which I found during my 9:45 wide range bar scan. HPQ was not a perfect 9:45 bar because it had gaped up and not traded up, but the bar was "Solid" green and price action was really bullish as the market moved into major support near morning reversal time. My entry was standard but price soon faulted a bit and slide tighter into the rising 20 ma. I held on as price popped back up confirming my 5 minute buy in HPQ. The green 5 minute confirming bar was taken out over the next 5 minutes as price just crumbled as did the entire market. As price took out my stop I decided that HPQ was headed lower, had a nice void, and shorting the stock after seeing my play fail twice hardly could be a loser, so I flipped my play short and held on for the ride. My target was .87 which I could see support @ .84. Price moved down nicely, then accelerated after the market started to move lower as well. My price was hit and I sold out of my entire lot with a 2 "R" gain even after making up the lost "R" on the losing side of the trade. Then price action set up a 123 pattern or GBI (green bar ignored) were there was an opportunity for a measured move lower. Were always taught that the 2nd move could be longer than the first move so I re-entered the play just below the small green bar. Price started to go a bit sideways then started to drift lower as I started to offer to cover shares almost immediately as price moved into profitable territory. Has price moved down into a flurry, I had covered about 1/2 of my shares and placed a break even stop on my last half of shares. This was smart to move my stop to a break even since I'm really shorting a powerful, bullish stock, which was confirmed as price finally did recover ending my play lower.
HPQ06122013