The QQQ opened with a small gap just above yesterday’s high @ 79.55 and ran up to set the high of the day by our first reversal time 9:35 am @ 79.68. Price then sold off taking out the first 5 minute green bar and headed lower into our first 5 minute buy that triggered. Price headed to the high of the day again but could not break the .68 cent area and price rolled back over. Since, we have been in a tight trading range from 79.68 – 79.36 through lunch. It’s been a narrow range day as expected, here’s the chart for the QQQ…
QQQ 09192013
My play of the day came in DIS which I found on my gap down list this Morning. A Tier III gap which requires a setup for entry and is better off to be played after 10:30 am. Unfortunately, I missed the first 5 minute sell as I was away from my desk, so, I thought I would look for an entry. After 3 red bars down, Price put in a nice solid green bar in DIS ending the move lower. I was looking for a retracement but what I got was a bear 180 bar which usually means we are heading lower. I wanted to play DIS because of the huge void on the daily chart and I knew we had at least another .50 cents lower so I decided to start my play with about 1/3rd share size below the wipeout of the 5 minute green bar. Price then consolidated for almost an hour not being able to muster a retracement higher. At 11:25 price broke down lower confirming our downtrend for short traders. Price fell so far and so fast that I was forced into taking some profits. Price then rallied up 2 – 5 minute bars and triggered another short entry so I added back my shares and reduced my stop. Price moved lower where I covered a few more shares before price rallied back up into minor support and triggering another sell and again I added shares short. Soon DIS had it’s flurry lower where I covered all but a few shares and finally trailed out of the play since I had been reducing my stop every time I added. This is a great example of taking a small position and being able to work into more than a full position safely and profitably.
DIS daily 09192013
DIS 09192013