Subprime Meltdown! Doubletop, Breakneckline and support --> $1940 profits
5 min Nasdaq Emini 100
Hi there,
How's it going lately? I hope you are enjoying the spike in market volatility as I am.. Traders need volatility to make money.. Market gapped down by close to 30 points today.. This is one of the biggest gaps I have ever seen.. Amazingly market made an attempt to close the gap and it did... I did not trade this... But as soon as it closed the gap, price bounced back... I stayed out of the market... I was unsure of market direction.. there seem to be enough strength to close a 30 point gap but as soon as it closed, it bounced back... this suggest weakness..
I only entered the market when a double top formation became apparent and price broke below the neckline and moving averages... I shorted 1 contract at 1985 and another 2 more contracts at 1975 when there was a slight pullback..
Notice how price broke down the support line established by the open price? After that the support line became a resistance line and price just plunged..
I held my position all the way till market close for a total profits of $1940.