We got a little bit of a bounce yesterday, but the volume was severely lacking. The market, especially the NASDAQ, has felt real heavy the last few days. It certainly seems like this is going to be a bounce that does nothing but provide upticks to be shorted. I think we’ll get a couple of more days of lift before hitting the wall. There are still a lot of good looking (bullish) charts out there, many of which completed morning star-like patterns yesterday. I’m keying on those type of moves for now, but looking to close out with a quickness.
I took your advice and bought some QQQs on this dip.
My methodology: bought first when the CMF/CCI went into the red, bought again when it got down near its low point in comparsion to previous swings.
Looks like it’s poised for a bounce of some sort. I may cash out when it gets back near overbought.
One thing worries me: my third indicator, the VIX, has not broken hard to the upside as it usually does just before a major turn. So I could have some more waiting to do before the trade goes comfortably green.
I’m not trading daily .. my goal is to catch the swings that happen every month or so.
When you say you took my advice, you mean about trading for real instead of paper trading, right?
Mike: yeah, that’s what I meant. For posterity’s sake: Mike offered no advice on my strategy except to say that I should try it with real money instead of paper trades.
LOL… I’m glad to hear that you’re back in the game.