Eat the Gap --> $1180 profits
5 minutes Nasdaq Emini 100 Candlestick
Hi,
How's it going? Fundamentalists will tell you that the market is still strong and the recently released economic data suggests that the economy is still in tact, with the housing sector on the rise again....
Well, how's that going to translate into profits for you? If you went long over the past few days, I guarantee that you'd have lost your pants!
From a technical perspective, yes, the long term uptrend is still in tact, but that is when viewed over a daily chart. Even so, the uptrend is slowly down and not drawing a nice straight line... you'd know the market is sick.
Yes, sick.... will oil prices falling that much, the market's not even bulging to the upside... something strange's going on... The alert trader will know better than to go long...
Today market gapped up by around 6 points.... it became apparent to me in the first 5 minutes that this gap is going to close, I was watching the Dow and S&P 100 futures plus the Russell 2000, all showed weakness.. I immediately shorted 1 contract at 1812 and another 2 contracts at 1820 shorting after....
True enough the gap closed at around 9:35... very pretty fast action eh? But I stayed on beyond that... all the markets were displaying weakness and there is no reason to exit too early... market tried to suppport price at the 1805 level,, but finally it gave way and plunged!! Yes! that's the nicest feeling,,, when you see your position snowballing in the profits...
At 10:10,, there was a slight pullback and I thought it's better not to be too greedy... I made enough for the day.. I exit all 3 contracts at 1791 with $1180 profits...