GDP 2Q up 4%, Head and Shoulders, Break neckline --> Short --> $200 profits
5 min Emini Nasdaq 100
Hi,
There was the GDP data released today at 8:30. Coming out at 4%, it was better than the estimate of 3.4%... But does this means that market is going up?? No, in fact market gapped down today.. Apparently market players did not like what they see...
Price made a furious attempt to close the gap and even went beyond it... However, there were no clear technical signals for me to enter and I stayed on the sidelines...
I only entered the market at 14:30 when price completed a head and shoulders formation and broke beneath the neckline... I shorted 1 contract at 1972 and exited when price reached 1961 which coincided with yesterday's close and my moving averages...
profits = $220. You might ask me why I did not trade another 2 more contracts as usual, that's because, I already wanted to get out at 1961 even before I entered the trade, the profit target was clear in my mind and I didn't think there was enough room for shorting another 2 more contracts.. The risk/reward is simply not attractive enough.