I must say that I was quite surprise to see the market come out of the gates so strongly and never relinquish its early gains. Albeit the volume was extremely low, but that doesn’t surprise me much either coming off of a holiday weekend. We managed to have one trade today in QQQQ, which we netted .04/share – nothing much, but we got into the trade after much of the market’s move had already been made.
Today’s gap up at the open is what we call a “professional” gap because the news is so strong (i.e. today’s 10am Consumer Confidence Report) that the gap never closes to allow the retail trader (you and me) to really participate in the market with any real significance. So as a result, on a day-trading basis, we can’t realize any descent amount of gains. With that said, if you used our trading system you should have still been able to net enough profit to make some cash net trading commissions.
My approach for the rest of this week, is to observe what kind of follow-through we get tomorrow, and whether there is enough volume to confirm the bullish move we saw today. We will also look to see whether price will eclipse the previous higher-low on the trend.
Here’s the NASDAQ and S&P charts…