The QQQ gaped below the last pivot low @ 79.30 to open @ 79.14 ending the uptrend on the 5 and 15 minute time frames. The Q's rallied into 10:00 am reversal time and triggered the first sell set up in the market. If you read my pre-market update from last night, you knew what to do. Why write about it and not take the play :(??? So I shorted the Q's with 1/3rd share size as the short triggered early on the new 5 minute bar. As the bar closed, price snapped back up and put in a bottoming tail, I thought I might have to kill my entry, but I hung with it to see what the next 5 minute bar would look like after it closed. The next bar closed red, then the next bar was an inside narrow range red bar and I decided that if the next bar takes out the low, I'd add another 1/3rd to my position and that is exactly what happened. Price sold off into a flurry and the low of day was soon hit where I covered 1/3rd @ .13 and I covered 1/2 of what I had left @ .13 cents. I left the rest of my shares at a break even stop @ .29 with the intention of adding back and reducing my stop. Not knowing, I just covered near the low of the day in the QQQ by 10:10 reversal time @ 79.06 as the market rallied back up into minor support taking out my stop and continuing upward and is still trading near the highs of the day here during lunch at 12:15 pm @ 79.73.
QQQ 10022013
My other play came in TGT which I found looking for a 5 minute high or low momentum play. Today, I had no gap plays to look at so my trading plan allows for me to substitute a momentum play which is basically the same as my 9:45 wide range bar play but it's a little more aggressive. As I began to watch TGT and 9:45 came, TGT made my 9:45 am wide range bar scan as well. My first entry came on the 1 and 2 minute charts as price pulled in to trigger the first sell in TGT. I entered with 1/3rd share size as TGT sold off hard testing the lows again but price could not make a new low. Price then rallied back to above my entry price before rolling over with the market at 10 am reversal time. I added another 1/3rd lot to my shares short and I was soon rewarded as price fell nicely as I covered a few shares @ .30 and more when the low of the day was taken out @.23. I was able to add and reduce my stop twice on the play but soon I was forced to cover my final shares at .25 as a series of bullish bars started to form @ 11 am. Two nice plays to start this 2nd day of October 🙂
TGT 10022013