The QQQ opened neutral @ 79.55 and immediately set the high for the day so far @ 79.72 and sold off hard. In the pre-market price had already traded below major support @ 79.48 area which was a hint of where price was heading first. Price continued to sell off hard into 10:45 am to set the low temporarily @ 78.80 then price rallied to about a 30% retracement before triggering the 2nd sell setup as short traders hammered the market lower. The market may have just hit the low here @ 11:50 pm near the 12:00 noon reversal time @ 78.45.
QQQ 10032013
My trade of the morning came in LLY which I found on my list as a beautiful Tier III gap. I usually wait for a proper buy or sell entry, but when the first sold 5 minute red bar took out major support in the 50.07 area, I felt comfortable shorting the 5 minute low. Even though, LLY soon gave another entry as a 1234 on the 5 minute chart as price sold off in a flurry lower. My first target was hit @ .51 and I had offers all the way down to the ultimate target of 48.50 but I had a "FAT" finger moment and accidentally sold all of my shares @ .48 cents, Ouch! My beautiful play in LLY turned out to be only 1 "R" unit of profit. But really, these are the mistakes that you want to see, when you still make money 🙂
LLY 10032013