The market opened pretty neutral this morning and rallied higher to set the high of the day in the QQQ by 9:45 @ 67.35 an area of Major Resistance. Then price rolled over and headed south and looks like price is just about to set the low of the day here at 11:15 @ 66.88 an area of Major Support. Yes, it looks like we are in a sideways pattern in the QQQ, Traders should short the top and buy the bottoms until a break out occurs...
My first play was a Tier I beautiful mortgage gap play in JDSU which I found this morning on my gap up list which I usually gather at about 9:15 am. I held off entering JDSU at the open, I wanted to wait for a sign that price was going to move in the correct direction. 1st minute we had a green bar close, the 2nd minute a red bar took out the low of the first green bar but price snapped back putting in a red bottoming tail bar or what we refer as a "money bar". as the next green bar formed I got ready, .29 cent stop, share sized correctly, I was in over .29 cents with the first target at $15.00 and a second target at $15.17 taken from the weekly charts. The play moved up nicely with a pop, then consolidation for a few minutes then another pop, then a RBI and finally target I hit where I sold 1/2 of my shares. It looked for awhile that we might hit target two, but price started to fail, so I sold my final position. I re entered the play several minutes later and rode price back up to the $15.00 area and finally sold the position. Overall a nice 3 R profit on this lovely Thursday morning in Las Vegas, Nevada...
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