The Nasdaq reached the first target of it’s Santa Claus rally Friday by touching it’s trendline and 50 day moving average. It moved over both Monday. I sold my longs into the rally Monday. A bullish market will either continue higher here, or consolidate. It’s doing a little of both. I’m focusing on longs and window dressing.

UWM is the Ultra-long ETF following the movement of the Russell 2000 Small Cap Index. We’ve got a breakout there too. A pullback to the trendline would make finding setups easier. We’ll have to see how it plays out here. January can be very good for small cap stocks.

I’ve been patiently waiting for this market to find support. The Nasdaq closed the gap today, and I’m guessing it’s headed back to the 50dma.

Last Friday, the Nasdaq tried to suck bulls in by initiating a buy signal. Anyone taking that signal was mauled by clawing bears, as that day ended in the red. A shakeout underneath the 200 dma probably frightened a few more bulls. Yesterday, another buy signal appeared on the Nasdaq which also happened to be a nr7 setup. I could see many charts setting up, and wanted exposure overnight, so took QLD. I didn’t realize it was ex-dividend today, and at first wondered why QLD was down over three points with the NDX gapping higher. I’ll pay more attention to Proshares distributions dates from now on, since I regularly trade the ProShares ETFs.

The big question now is, are we going to have that Santa Claus rally? Well, I’m trading like we are.

I kept QLD overnight again, and added the Ultra long Technology ETF, ROM. Technology stocks are setting up, and this double long ETF gives me a higher beta than say the holdr SMH… which has a buy signal too.

Intraday trades went well in IPO land. I mentioned XIN this morning, which gave an excellent early entry (5-minute chart), and a base break at the end of the day. I kept 1/2 overnight, because of the daily buy signal.

I missed the early entry in IPO N on the 15-minute chart, but caught the breakout later in the day. I need to remind myself to constantly watch those multiple time frames. I would have been better off using a 15-minute trail stop, instead of the 5-minute on N. Remember to watch the whole picture.