After yesterday's narrow range day, the QQQ opened the day with a large gap down to 75.95 and immediately set the high for the morning at 75.99. Price sold off hard into 10:10 reversal time setting the low of the day @ 75.29 then price action bounced higher into 10:35 reversal time and again price headed lower but could not take out the low of the day setting the 1st higher low @ 75.41. The QQQ has since broke the crown on our W formation ending the current 5 minute down trend and price is currently trading @ 75.77 area. The gap down and trade through the 75.87 area officially broke the daily uptrend in the market...
5 minute chart QQQ 08152013
My only play for the morning was in XLNX which I found this morning on my Gap down list. Not a top tier gap but price was breaking the major support area on the daily chart so it made my list. Now I just needed an entry which I found on the 2 minute chart as price rallied hard into 9:45 am then triggered the first sell setup with a V-top formation which I love. I was in short as the last green bars low was taken out. Price immediately headed lower coming within .04 cents of the 1st target where I sold 80% of my shares. I moved my stop to a break even on the last remaining shares and soon I was able to lower my stop. I lowered my stop once again and soon was trailed out of the play. Nice 1 "R" play to start my day 🙂
xlnx 08152013