We're off to another action packed start today. I'm watching USO as a proxy for oil -- it's already down over 2% for the day. Many of the metals stocks, especially copper, are getting hit again. WIRE, PD, PCU, ATI and TIE are all on my screen.
The QQQQ is gapping down about 20 cents. Right now it's trying to find support at the $40 mark. I'm thinking of trying a gap-fade setup I read about recently in 'Mastering the Trade'. (thanks again for the book Dave!) The play is to simply fade the gap at the open (in this case buying the gap down) with a stop equal to the size of the gap. Profits are taken upon the close of the gap. The risk-reward ratio is only 1:1 but according to the book it's a very high percentage setup. I think that this is a good gap to try to fade given how far (almost 5%) the QQQQ has fallen over the last few days. We'll see...
Update @ 9:43: Well that was a quick 1R gain in QQQQ. I bought it at 40.02 and sold half the shares at 40.32. I'm trailing a stop on the other half.
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
coming...
Gapping Up
coming...
Disclaimer & How I use this list
