Since my last
post on the QQQ's there has been some very interesting price action that has taken place. The importance of recognizing levels where stops are entered is essential to all aspects of trading. It's also very tricky. The market wants to make you more confused then ever. The 88 level on the Q's and the 50SMA were lining up hand and hand for the 2 day short covering rally we saw as everyone got stopped out as those levels were taken out to the upside. My position hasn't changed and I'm still bearish on the market. As that level was breached, the volume was weak and it was quite obvious the algos were in stop hunting mode when watching the tape as we crossed 88. This next chart is an update from the previous post with the most recent price action as of Thursday 5/15/14. The stop hunt was effective and I believe it set the market up for a fresh new wave down.
I continue to believe the most profitable set up's and trading come from patience and conviction. Although the market doesn't give a **** about what you think or what may be right or wrong. The charts tell a story of buyers and sellers in an open auction market.
The next chart I remove all the technical studies I use and simply look at volume and patterns; if you're a new reader, I suggest reviewing this
post to catch up on the developing story.
Yet again, another inflection point. Till tomorrow.
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