Thursday, January 18, 2007

Trade of the Day - NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)

As mentioned last night, this last breakout felt like a bull trap. This morning I felt even more strongly about it and so I shorted the Qs on a break of the pre-market low. My original stop was the pre-market high. As you can see from the chart, by 10:30, I was comfortably able to move my stop to breakeven. I covered into the close.

ICE managed to stay within yesterday's range until mid-afternoon when it swooned down for a test of yesterday's low at $127.50. It quickly pivoted from that point and started to rally so I took a scalp trade as price crossed back above $128.00. As price moved above $129.50, I tightened my stop to $129.00. It briefly crossed $130.00 and started coming back in fast, so I decided to book my profit at $129.50 rather than hold into the close.

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