All Time Highs Keep Cooking 053107

Stocks GRMN, AAPL, GS, BIDU, CLF, and the list goes on… are ramping the stock market higher yet again. Yesterday was an interesting day in which a bad selloff in the Asian market was completely ignored. An outside day to the downside in the double short, Proshares ETF, QID, could be considered quite negative. The new all time low in the ETF… another negative. Or is it a fakeout?

While trading the long side in stocks such as those mentioned above, I’m still looking for exposure to the downside of the market, via the short biased ETFs; QID, MZZ, TWM, DUG, etc.

Yesterday they caught me on the long side in QID. Buying the higher high didn’t work. That’s why we set stops. Review my entry and exit on the chart below.

Today, I’m looking intraday for a trading setup long again in QID. The base break higher on the 5-minute chart is a play.. if it sticks here. I’ll set my stop .25 below the day’s low, with 1R = to around .75.