Getting Torched On A Gap
The Qs are continuing key
downtrends established last year*
as trends remain short on daily, hourly and 13-minute time frames, despite
another fleecing of the retail flock occurring on the gap up. Volume this
morning has certainly been stronger than much of last week, yet market
participation likely won’t be back to full levels until next week. Support
angles for downtrends have been strong, and basing north of what is currently
key resistance is a prerequisite for longer-term long positioning.
(1)
Approx. Equivalent QQQ Price
It never ceases to
amaze me how many retail and novice traders get torched on buying gaps up or
shorting gaps down, and in this case the Qs gapped into a brick wall of
resistance, yet it goes to show that plenty of opportunities remain on the
professional side of the trade. As I’ve often said, I could care less as to
where we’ve been, as the future is the only relevant time frame for profit
potential.
Good Trading!
* A little Holiday
humor … admittedly very little.