Wild ride in the QQQ today with a hard sell off in the morning followed by a huge rally then another late day sell off into the close. Trader heaven for day traders and I expect more Volatility Wednesday. This mornings rally looks like a 40% Fib retracement on the 60 minute chart. If the downtrend is going to continue on the 60 minute time frame, the low @ the 78.50 area should be taken out tomorrow, so my bias is short. Currently we are still in a 5 minute downtrend If we gap up or rally up and stay below the the 79.11 area, I'd look to take the first 5 or 15 minute sell that triggers with a target of the 78.50 area and a 2nd lower target of 77.75. If we happen to gap down, I'd look to take the first 15 minute sell that triggers at 10:30 am reversal time near the 79.00 area. I'd look long if we happen to gap above the 79.11 area and rally, then I'd look to take the first 5 minute buy that triggers near 10 or 10:30 am reversal time.
QQQ 09242013 Homework 1
Longs: Shorts:
AIG - Daily buy triggered C - Gap continuation
CREE - Daily buy watch ESRX - 123 continuation
CTSH - Daily buy triggered LLY - Daily buy continuation
GILD - Daily buy watch MET - 1234 watch
LOW - Daily buy triggered
SLB - Daily buy triggered
XLNX - Daily buy watch