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  

Cover half (+0.08). On the 5-min chart, QQQQ is forming a tail. Move stop to
breakeven.

T.Kamada

If you have questions, feel free to mail them to me.