This Is Why You Should Watch Gap Zones.
We are waiting for the
outcome of the FOMC. Most of analysts agree that the Fed will be
raising the Federal funds rate by a quarter percentage point. Currently, Dow
Jones Industrial Average is up 0.29%, and Nasdaq Composite Index is
up 0.16%.
10:00:16 (From TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
QQQQ |
Short at the market |
reversal  |
37.66 |
37.26 | 37.49 |
TK |
The daily chart below is
Nasdaq-100 Trust (QQQQ) as of yesterday’s close. The issue is pulling back
from the recent low on decreasing volume, and nearing the lower boundary of a
gap zone, a potential resistance level.
QQQQ opened slightly below the gap zone and sold off immediately. After
confirming breaking below yesterday’s close, we sold the stock short. It gave us
a small 8-cent gain.
10:08:41
Follow up on QQQQ Â
Cover half (+0.08). On the 5-min chart, QQQQ is forming a tail. Move stop to
breakeven.
If you have questions, feel free to mail them to me.