Breakout of the Breakdown 022208 – End of Day Rally

I find it funny that news came out a half hour before the closing bell on Friday, which helped the Nasdaq rally back 30 points, and the DJI 200 points, on the day. Did they have to hurry to release it before the bell rang, or was the release timed?  I’ll never know. It seems interesting it happened just as the Nasdaq was beginning a new leg down intraday. You can see the candlestick to a new day’s low on the chart. Then it
closes at it’s high of the 5-min period, and is followed by another bullish candlestick.

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Now unless you’re really on top of your game, you’re not going to buy the higher high there. The candle just made a new low. You can definitely tell something is up though, when the next candlesdtick becomes a wide range bar. Bulls have rushed back in.

Psychologically it’s tough to buy after sitting all day in a market that has done nothing but drift lower. This is the time you must though. This is the trading opportunity you’ve waited for all day. I sat there and knew I should pull the trigger. I knew QLD would rally to it’s 200ma. I’ve seen it occur before. I finally did get in after it had already run a point. Moving from a very patient stance to one of aggressive action is a key factor in successful day trading. Master it, and watch your account grow.

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