Tuesday's action was what a consolidation day looks like. The Qs performed their usual dance around the pivots, with S1 providing a distinct support level and the PP and Monday's close (the solid yellow line) providing resistance. I just managed a couple small trades on Tuesday as I was engaged in some ongoing market research projects and was not 100% devoted to the market dynamics. Sticking with my weekend update, I'll still feeling a bullish bias in the Qs at least until Thursday or unless Cisco really tanks on Wednesday. That being said I picked off a couple longs at 11:10 and another one dead on 3pm.
The first one tied up my money for 60 minutes and yielded but .18. The second trade was actually a combination of the convergent parabolics, 3/7 MA crosses and the S1 rejection along with the last hour bullishness that has been a continuing anomaly in the market for the past several weeks. The later trade was more successful and returned a net .27 for another 55 minutes of exposure.
The net result was that although the Qs total high-low range of the day was .43, those 2 little 1 hour trades picked off .45 , a number I could have doubled by also playing the short side, but, as mentioned earlier I'm still in the buy the dips mood. It's days like this that remind me why I prefer daytrading.