I captured this QQQ chart because momentum just stopped. This was a good time to sell the longs and go short. Markets are currently piledriving. Look at the declining volume. It seemed to be a suckers rally to me and so it has proved for the moment as the second chart shows.
6 comments:
outstanding
bct- it was like there was a big flashing neon sign that said "down we go".
Scott,
I saw it but still get paralized, as just before the drop it was very strong. Going over my thinking at the time I just wasnt prepared for anything to happen and get short. On the positive side,,,I did see it start and can see what you are talking about. I was paying more attention to the Spy's but the bigger signal was on the QQQ's. Those momentum moves are where a trader wants to be. I was watching DE at the time and,,,,,well,,,I just didnt take it is all I can say. System,system,,,,right?,,,,thanks for continuing your postings.
Tom
Hey Scott, on an observation like this, what exactly do you trade, the QLD's? Or will you start scanning for shorts in the liquid, volatile stocks (like BIDU for instance)?
sean- I only use the QQQ as a momentum indicator I dont actually trade it, not enough range to make much out of. I prefer to trade stocks that move $2 when the QQQ moves .20
the red lines on this chart are only reference marks as to the high and low and support
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