Nasdaq 100 broke Support Line of 1700.
Price closed at 1700 yesterday and I was expecting either a rebound or break out to the downside today. Well today opened lower and market sentiments seemed negative. Also technically speaking, price is below the moving averages and MACD and the stochastics are all in the oversold region. It makes sense not to go long. The only play is short.
I shorted 1 contract at 1695. I wasn't very confident of how far the break out can go. I didn't pyramid my position. My profit target at 1686 was hit in less than 30 minutes with $180 in my pocket.
I continuted to monitor the market. After my profit target was executed, market went up by a tiny amount before plunging again. I decided to short 1 contract at 1684 and 2 more at 1675. I expected the break out to continue in momentum and placed my target at 1660. However at 1667, it began to bounce back. I was feeling uneasy about this development and got ready to exit. I finally when it hit 1667 I took profits of $660.
The total profit today was $840.