Continued momo in the markets today, although on the lowest volume in 10 days in the case of the Qs. The volume surge to the upside in the last 10 minutes was encouraging for those looking for a continued Santa Claus rally. I stood back from today's action due to some other commitments, but with little regret. My current inclination is to be cautiously long as we approach serious overhead resistance and then move heavily to the short side once the rally wanes. Despite good earnings from RIMM, ORCL and others, there are still major holes in the economic fabric that will not be resolved any time soon.
With abbreviated trading next week, there will be lots of opportunities for the games that usually get played in low volume sessions. Stockpickr has one short term approach to trading the recent pop in the Qs that they call the QQQQ Sweet Spot. Based on the strategy parameters , the entry gap at the current price to trigger the trade on Monday is .15 -.31. They also profile a number of other Qs trading tactics, profiled under the Active Trader tab, along with a daily update of high probability trading candidates.
Be sure to use a stop.