Friday, June 05, 2009

Qs Open Fade

This setup was eerily similar to last Friday's gap fade.
Although it wasn't that impressive as a gap, the first 10 minutes (1 minute bars shown)showed some clear facilitation about any more strength coming it. The fact that this hesitation occurred right at the R2 pivot was a further hint that a fade might be in order.
But the real kicker was the action of the NYAD, which showed weakness after the first 2 minutes.
The Schwab chart fired a parabolics SELL on the Qs at 9:43, right in line with the window of opportunity that I described last Friday and the NYAD signal was right in sync.
The fade down the followed transpired quickly and within 6 minutes the Qs were down to PP. I took of half the position as the Qs bounced up, noting that the NYAD was still clearly downslope.
At 10:16 I re-entered the half position Qs short as the parabolics fired again and the NYAD was still on a SELL.
This turned out to be a good call as the Qs quickly dropped to S1 at 10:14, the parabolics fired a COVER on the Qs and the NYAD and I was out of the full position.
Net results: a nice little run down from 36.96 to 36.48 = .48 in 32 minutes.

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