The Q's had a small gap up to open @ 75.78 and shot up to set the high of the day in the first 5 minutes @ 76.03. After, price drifted lower into 10:20 am reversal time setting the low for the morning at 75.78. Typical on FOMC days, price went sideways into lunch not doing much of anything until FOMC minutes were released at 2:00 pm when price did a head fake lower then shot up to break the highs of the day. Price broke out to set the high of the day @ 76.21 by 2:55 pm then price sold off hard into the close testing the lows by .02 cents and finally bouncing to close the day @ 75.82.
5 minute chart of the QQQ 07312013
My play of the day came in LOW just as we were heading into lunch time on Wall Street. I found LOW on my daily long list because price had triggered a buy on the daily chart. Once LOW broke out on the 5 minute chart, I wanted to play the next 5 minute buy setup. Price hit the 44.50 area and started to base bullishly and as price neared the rising 20 ma price began to move upward so I entered with stop at the bottom of the base with a nice tight stop of .10 cents. The first target was relatively near but with the tight stop I felt that there was a good chance that price could hit $45.00. As I entered the play price dipped a bit and then moved on up nicely hitting my first target of .69. As price headed sideways again price put in a money bar taking out the low of the base and snapping back to take out the high. I felt for sure that price was heading upwards so I held on with 1/2 of my shares for another 5 minutes as price just sat there. During the next 5 minute bar, price started to break down, since we were headed into lunch and the Fed was going to release the FOMC minutes at 2:00 pm I thought it would be best to take my 1 R profit and head out for my daily walk. I missed the 2 pm action and as you can see, Price in LOW did hit the $45.00 level. I'd rather be safe on FOMC days since they seem to be some of the most challenging days to trade for master traders. Here is my 5 minute chart for my trade in LOW.
