Bounce of Moving Averages, Stochastics downturn, Market still weak --> SHORT IT --> $770 profits
5 min Emini Nasdaq 100
Hi,
If you are a long term investor.. the recent market plunge would have killed off around 20% or more of your investments... But, as a day trader,, the plunge provide interesting opportunities to profit from the long over-due correction...
The market opened with a gap down... it tried to close the gap but failed.... and started to plunge down again.. this alone is a sign of extreme weakness... I did not go short immediately but waited for some confirmation... At around 12:10,, price started to bounce off the moving averages and the short term MACD also cut its signal line... The mid-term MACD also appeared to be cutting its signal line... I went short immediately of 1 contract at 1750...
at 12:55.. there was a slight pullback and I shorted another 2 contracts at 1743....I exited at 13:35.. when the short term MACD tried to cut the signal line.. with profits of $770...
you can see that even after that, price plunged even more towards the closing bell... I missed this leg...