I did not suspect the huge gap up in the market today, but with Washington’s continued involvement with taking from the haves and giving to the have not’s for no other reason than to be fair, we will continue to have huge swings in the market which can be excellent moves for the Day Trader. I was right about two things and that is we had a narrow range day of trading which usually comes after a wide range bar on the daily chart and the 2nd thing was that we would see an hourly buy sometime during lunch or early afternoon which we did see. I had a nice short today in NOV and could have replayed it short until the market had bottomed for the day. This is hard to keep replaying something in the opposite direction of such a bullish gap in the market where we had gaped over the pivot highs made back around December 20th. I had a hard time wanting to play long over lunch or afternoon with such a large gap. My only interest was if the market would sell off in the afternoon since price had hit major support within the first 5 minutes of the day. The real strategy for a long today would have been to play the hourly buy as the market had triggered. Patience is to wait for the 15 and 5 minute time frames to line up at the same time or like today, wait for the W bottom on the 5 minute time frames confirming that the low of the day indeed had been hit in the market before going long.
qqq01022013
qqq01022013