It’s Not Easy Being Green

Today was a little choppy ,but if you noted it was a range type of day early enough, you should have been able to catch a few decent fades. I myself took a very small amount of trades today. If you read yesterday’s post you would see that today is exactly what we did not want to see. I really wanted to see a bit of failure(selling) on this qqqq’s chart . Had we got a red candle hanging off that 8 period moving average, I would have been looking to get short on Tuesday. However we did not get this. We actually opened in value area today and tried to find trade in both directions, only to close a little up on the day. In my opinion not much conviction of any sort. The lack of extreme selling has delayed my plan to short tomorrow. Let’s give it one more day to see if we get the selling I am awaiting. We will see what happens and formulate a new plan of attack at the close Tuesday.

In the meantime let’s stay intraday trading. I will be currently looking to make some daily income from scalping the YM Sept contract. I will post some of my intraday idea after the open in the morning.

Let me also point out that since the financial sector has been so paramount these day’s, I will be keeping an eye on Goldman Sachs earnings report tomorrow before the opening bell. I really don’t care if they beat the street or not, but I think it’s worth keeping an eye on for any surprises as they are the big boy’s of that sector.

QQQQ’s closed up , negating our plan to swing a position short on Tuesday. Also notice we are above our 48.35 line in the sand. This is not a good sign for the bears. Let’s see if the bull’s can hold it above the line or if they step off the gas and let it get slammed.

TLT saves The Day

So we mentioned last pot that we would continue to look short if the price action stayed below 12742. It however did not. Once we had intrest above this number this was a soft signal long for me. It was confirmed when the qqqq, broke over its opening [rice at almost the same time the TLT ETF broke to new lows. After all this and still no big price move it was high probability that bulls where going to make an attempt. They did, when the YM broke to a new high it was a long signal. Had you taken this trade up to R1 you would have been good for about a 50 point move. I sold half at yesterdays high on the ride up as that could have acted like more resistance then it actually did.The chart below shows the QQQQ getting above the opening price. Notice how I draw the opening price right away and watch it very close in the first hour or trading. It is a paramount flip point as set forth in this morning trade.

A decent morning so I am taking a break. I

The failure point on the YM future contract that I am watching is 12758. This is not only the opening price again but also lines up very close with the 61.8 retrace of that last push up. Having these two levels at the same area on the map is a very high probability flip point.