The QQQ opened this morning with a small gap up @ 85.84 and set the high of the day thus far @ 85.96 by 9:35 am reversal time. Price then sold off into 10:10 am setting the low of the morning @ 85.50. Price rallied into 10:30 am but could not get above the 85.75 area before rolling back over to test the lows by 11:50 am. The Q's then rallied into lunch but has since rolled back lower @ 1:10 pm and have recently taken out the low of the day and set a new low @ 85.39 by 3:30 pm. Price is currently trading @ 85.45 with only 15 minutes left the trading day.
QQQ 12022013
My play of the day came in AKAM which I found on my Gap list first but then after not opening with the proper gap I removed it from my list. At 9:45 am AKAM made my 9:45 wide range bar list but I was still a little hesitant since AKAM trades thin at times and I've had problems trading this stock before. My first entry came on the first 5 minute sell which I entered with very few shares to test the water. I added to my short position 25 minutes later but my total share amount was still a token. Price then rallied into lunch and went sideways. My bias for the day in the market was still lower and I had not fully committed to my trade in AKAM yet so I just waited for price to make up its mind on direction. AKAM could not break below the .49 cent level and I decided if price broke .47 cents I'd go full on the play. At 10 minutes after 1 pm price broke down hard to .46 cents where I went full share size. Price then snapped back as if it were a shakeout lower, I held on to watch price finally roll back over. AKAM accelerated lower hitting my first target @ .17 and I sold a few more shares @ .06. I finally trailed out of the play @ .13 cents.
I was able to profit handsomely because I did not allow myself to get stopped out of the play and my bias in the market was correct as the QQQ headed lower as well. I've found that the key to staying with these plays is being able to predict the markets move. Everyday at 10:30 am the Q's have usually set the high and low for the day 80% of the time and I take note of the color of the daily bar. If the daily bar is green @ 10:30 am, I look to play my longs for the rest of the day and if the bar is red, I look for shorts. The market will usually end the day the same color as it is @ 10:30 am and knowing this helps you build into a play with confidence that you have the right direction.
akam 12022013