Pivot High

TGIF – Just as I mentioned in last nights stock picks, the market gaped over yesterday’s high.  My post recommended taking the first 5 minute buy setup and if you did you were handsomely rewarded.  The Q’s triggered the 5 minute buy at 9:45 am and set the high at 10:30.  We have since rolled over hard and I’d be looking for a 15 minute buy sometime over lunch or late afternoon.  My trade this morning was in VLO which was on my Daily list as a Gap continuation play.  VLO gaped again this morning over yesterday long consolidation, I wanted the 2 minute high as an entry, but I just could not take the trade, so I waited for a pull back and soon I was able to 

VLO

enter on the first 5 minute buy.  I had a nice tight stop and was able to max out on the share size.  Feeling a bit blotted I sold 1/2 the shares on the flurry up into .34 which was .10 cents of profit.  The remainder I was looking to sell again at the High of Day (HOD) but price could not break through, so I sold the rest of my shares on a 2 minute bar by bar break.  This play was on a very bullish stock and price should have taken out the high by definition of an uptrend and therefore I took my chips to the bank!  As you see the chart above, I made the right decision.  

The market gapped down to day slightly and imediately filled the gap but continued lower setting the low of the day at 10:30.   The market rallied and set the high at 11:30 where the market drifted sidways for most of the rest of the day.  The daily chart shows an inside bar day and the the hourly chart showing price action in a sideways pattern.  

qqq

If we happen to gap over 66.80 area (1) I would expect that we will break through the high of the previous day at $66.92, I would look to buy the first 5 minute buy setup that forms in the 66.75 area (1).  If we open neutral, one could look for a buy setup near the $66.35 area (2).  If we happen to trade through $66.23 area or gap through, this would be barish and I would look to short a 5 minute sell setup on a pull back to this area.  On a gap below 66.23 you could short the first 2 or 5 minute bar with a target of 66.50 - 66.00 area.        

Today the QQQ’s  almost did a repeat from yesterday, price gapped up, filled the gap and took off long until 12:30 which was the high for the day and we faded lower the rest of the afternoon into the close.  

t

We are 4 days up already and should be expecting a pull back.  For Wednesday if we open neutral we should be looking to play the hourly buy somewere in the 66.35 – 66.00 area around 10 or 10:30, our first target will be 66.90 and longer targets at 67.50 – 67.75  area.  If we gap below the 66.00 area and continue lower, we will be barish and we will look to take the first 5 minute sell setup that pulls back to this area at 10 or 10:30 am.  Our short target will be the 65.00 area.  Last but not least, if we happen to gap above today’s high of 66.90 we can play the pull back into the base on a 5 minute buy setup or the first 5 minute buy setup at 10 or 10:30.  I would not be surprised if we had another repeat of the last two days of trading…   

The SPY appears to be gapping up so far after hours.  If the SPY gaps over 139.70 area one could look to buy the first 2 or 5 minute high.  The first 5 minute buy setup would also be acceptable with weekly targets at 141.74 and 142.38.  If no gap, wait for  the SPY to trade above the 139.70 area and buy the first 5 minute buy setup which occurs.  A gap or trade below 139.00 area would be bearish and one could look to short the SPY on the first 5 minute Sell setup looking for price to trade down into the 137.50 area.   

QQQ 15 min

In the Q’s we will look to buy a 2 or 5 minute high if price gaps or trades over the 65.90 area or wait and buy the first 5 minute buy setup.  A trade below 65.50 area would be bearish and one could look to short the first 5 minute sell setup with targets at 65.00 and 64.50.   

Looks like the QQQ’s are gapping up slightly after yesterdays rally and sideways movement for the rest of the day.  The first 5 minute setup should be buyable with a target area of $57.30 area.

Daily plays:  XOM – 123

Hourly Buys setting up:  GILD, JNPR, SNDK

The Q’s gapped over Friday’s base and went straight up until 10:30 am EST then went sideways and faded until 3:30 pm when finally we had a late day breakout and finished the day at $55.90.

QQQ

For tomorrow:

Any pull back to the $55.25 area is buyable and I would look to play the first 5 minute buy set up.  A gap to the 56.20 area or above would be shortable after a 2-5 minute buy failure and look to play price back to the base at the $55.75 area.  A gap below the $55.24 level, I would look to short the first 5 minute buy failure with target are of $54.50 area.