The Nasdaq tagged it’s 50 day moving average, and more. A look at the 60-minute QLD chart shows the market getting a little overbought here though. I’m long QID.
We’ll probably move back into the channels that the market’s been stuck in for the past few months. This pullback will give more clues as to whether the market can move up, and out of this trading range.
Commodity related stocks AGU, MON, and MOS have bounced the last two days. Oil related stocks ECA , DO, DVN and the double-long ETF DIG, have been involved with the bounce too. Commodity stocks have probably run their course for this cycle. There will be bounces though, so pays to have these on the watch list.
{ 3 comments… read them below or add one }
Hello… I’ve been (mostly) dry daytrading QLD for practice. I find your comments to be excellent — short,concise, and (compared to other commentary) lucid {that means good). Hence, you are the home page on my trading computer. Keep up the good work. Concentrating on QLD is an excellent avocation, so far. It moves. I use 15 min, 5 min, and 1 minute charts with the windows overlapped. The 15 minute tells me where I am, the 1 minute for pulling the trigger, and the 5 minute for comedy relief. In addition, I use a fourth overlap chart… it show line graphs of four indexes $SOX (utterly fantastic), $DJI, and $XCI, and $NDX. Watching the minute bar in conjunction with $SOX and $DJI provides some guidance for when to buy, hold, and fold. QLD never goes against $DJI for long, and $SOX is really wild and tends to lead. I also have a small 1 second 1 minute line chart for QLD, which comes in handy when approaching a reversal so I “know” when pull the trigger. I trade 1000 share lots. Market open can be good for a few hundred dollars — frequently going short — and the rest of the time what I’m looking for is steep vertical price movement. The sideways stuff is generally useless for scalping because it’s too slow and doesn’t last long enough to form a good run. So unless I’ve correctly gotten on the right side of the “trend for the day” after market open scalping, I’m sidelined for long spans waiting for channel breakouts and breakdowns. When I’m in, I spend about three quarters of my time short (rather than long), because that’s where the rapid gains are made. All this on a 20 inch wide screen monitor! Pretty busy real estate. I’m looking forward to 9 good days out of 10, as the money is right in front of me like Niagara falls, as long as I don’t slip up and go over it in a barrel. Appreciate any pointers you can give.
Hi Rich,
Thanks for the comments.
The money is right there in front of us, isn’t it. It’s often my own emotions that stop me from grabbing it. You hit on a lot of key points I like.
“The sideways stuff is generally useless for scalping because it’s too slow and doesn’t last long enough to form a good run.”
Right on. Patience. Boring, but you gotta wait.
“So unless I’ve correctly gotten on the right side of the “trend for the day” after market open scalping, I’m sidelined for long spans waiting for channel breakouts and breakdowns.”
Trading with the trend is so important.
“When I’m in, I spend about three quarters of my time short (rather than long), because that’s where the rapid gains are made.”
You’ve spotted a niche that works for you. Exploit it over and over again.
My pointer to you is keep the confidence that you are a trader with a winning formula. That formula sometimes needs refining, and you have the skills to spot it.
Thank you… do appreciate the work you are doing and sharing with us here, especially since I still have a lot to work on…