The QQQ opened neutral today @ 78.08 then sold off until 9:45 am triggering the first buy in the market which would have been hard to take since the 5 minute downtrend had ended yesterday afternoon. Price rallies to 78.18 and takes out the prior pivot high from Wednesday afternoon by 10 am reversal time which continues our uptrend. Then, the Q’s put in a two bar pivot and headed higher, which would have been the time for traders to enter the move. Price rallies into 10:50 am setting the high for the day @ 78.25 and then rolling over hard as price sold off to retest our lows near the low of the day @ 77.85. By 11:35 am the QQQ could not make a new low and started to rally again into lunch when price faded a bit before continuing the rally at 12:30 pm. Price rallied into 1:30 pm reversal time but could not take out the high of the day and price started to roll over again. Price chopped away lower fading the rest of the day to close @ 78.04 just .04 cents off the opening. A narrow range day leaving a red doji style bar on the daily chart…
QQQ Daily chart 09122013
qqq 5 minute chart 09122013
My play of the day actually came from my long list, but broke down hard this morning triggering a daily sell. TGT sold off hard this morning putting in a measured move lower on the 15 minute chart. My 15 minute short triggered as price in TGT rallied back up into an area of resistance and rolled over triggering my short play. Since the Q’s were testing the highs again, I felt that it was a good time to be taking a short. I put my stop .06 cents away from the last pivot high just in case price would retest this high area. Good thing as price did exactly what I thought it would do but since there were overlapping bars to my left I felt that this area of resistance would hold the retest and it did like magic as price rolled over and went lower. My first target @ .06 hit where I covered 1/3rd and prices looked even lower. At this point we were 6 red bars down on the 5 minute chart and we had less than 30 minutes left in the day, I decided to bar by bar my last 2/3rds shares. TGT went a total of 8 red bars on the 5 minute chart before triggering my cover on the last of my shares. A nice 1 “R”isk unit trade near the end of a tough trading day for most traders.
