What started off with a boom, ended as quite a disappointment for the bulls today, giving up almost all of its gains on the day. However, the rally was still enough for me to where I don’t want to be net short heading into the open tomorrow. As a result, after having sold my long position in the QQQQ at $43.06 (original entry was at $42.49), I decided to jump back in right at the market close at $42.54 to bring my portfolio back to a neutral bias. The candle pattern formed today was an doji pattern, that I’d prefer to stay away from for now, as I believe the indecision plays to the bulls favor at this point. Once it looks safe to come out and play, I will sell my stake in QQQQ, much as I did today when it became obvious the market was determined to try and close the opening gap.
As you’ve noticed there has been a lot more content in recent days, and I will continue to add more and more going forward. My main goal is to provide you with as many trading ideas as humanly possible and to help you keep your portfolio on the right side of the market (easier said than done).
Below is the S&P daily chart today. As you can seen that neckline is a source of a lot of frustration over the past 8 months for bulls and bears alike.