Although we came off the lows and had a nice move up, I hesitate to call this a rally.
Thursday a week ago we had a doji on NQ and hammer on ES. (after a long grinding downtrend) Then last friday we had a bullish day which left my daily stochastics giving a bullish signal coming off the bottom. Narrow range consolidation for monday.
Then tuesday we had a bull day bouncing off the 15 pd ma that has now begun to slope up. Daily stochastics were very bullish on tuesday. Wednesday and thursday were both consolidation days with prices ending relatively close to where they opened, down some with thurday being the tighter range of the 2 days.
Friday with daily stochastics still bullish and wednesday and thursday basically consolidation days. Chances were getting higher for an upside breakout.
Prices dipped down through the 15ma on my nq daily chart on the oil fire news. (I trade nq so that's the chart that I look at most often)
I went long nq when price dropped to 991 and got stopped out at 987.50 for minus 3.5. Then I made another quick assessment of all that I was seeing and went long again at 987. At this time I knew nothing of the news, I was just playing price action.
So I sat on my 987 for a few minutes and sold the first weakness that I percieved to be a stall @ 993 for plus six.......Wahhh......lol....Woulda, shoulda, coulda and all that.
Oh well, my greatest weakness has been and still is, letting profits run. (still had a green day, but man o man, had a super entry and only milked it for 6 points out of a possible 34)*fear of losing money, plain and simple*
Anyway back to the topic. Why wouldn't we at least move (rally) back up to or near the top of the last 3 days' trading range, especially with the daily stochastics being as bullish as they were.
The question now is, will we break out of this range to the upside? ES 852 area and NQ 1022 area. My guess is *probably so*
I think that NQ has upside potential to hit 1062 area this week. Of course it also has potential to hit 700....lol....*Anything CAN Happen!!!* I'll have to wait and see, just like everyone else.
Looking at my daily NQ 15 pd ma sloping up and my stochastics for same, near 80 band and still pointing north, I am inclined to *think* that we have better odds of a continuation higher. I have drawn an uptrend line from last fridays(14th) low up connecting this fridays low. I also have drawn a line at the same angle touching the highs on tues.- 18th and wed. 19th. creating an ascending channel. I will soon enough see whether or not price trades within this channel or not. It's just a guideline, nothing more.
On my weekly NQ chart I have a downtrend channel drawn, so unless the market breaks out of that, I'm not really looking for a whole lot of upside.(weekly stochastics on my setup still looking bearish) But hey, I'm a daytrader. So as long as it moves....place an entry, place a stop and let her rip. (still got work to do on that 'rip' part)
Thursday a week ago we had a doji on NQ and hammer on ES. (after a long grinding downtrend) Then last friday we had a bullish day which left my daily stochastics giving a bullish signal coming off the bottom. Narrow range consolidation for monday.
Then tuesday we had a bull day bouncing off the 15 pd ma that has now begun to slope up. Daily stochastics were very bullish on tuesday. Wednesday and thursday were both consolidation days with prices ending relatively close to where they opened, down some with thurday being the tighter range of the 2 days.
Friday with daily stochastics still bullish and wednesday and thursday basically consolidation days. Chances were getting higher for an upside breakout.
Prices dipped down through the 15ma on my nq daily chart on the oil fire news. (I trade nq so that's the chart that I look at most often)
I went long nq when price dropped to 991 and got stopped out at 987.50 for minus 3.5. Then I made another quick assessment of all that I was seeing and went long again at 987. At this time I knew nothing of the news, I was just playing price action.
So I sat on my 987 for a few minutes and sold the first weakness that I percieved to be a stall @ 993 for plus six.......Wahhh......lol....Woulda, shoulda, coulda and all that.
Oh well, my greatest weakness has been and still is, letting profits run. (still had a green day, but man o man, had a super entry and only milked it for 6 points out of a possible 34)*fear of losing money, plain and simple*
Anyway back to the topic. Why wouldn't we at least move (rally) back up to or near the top of the last 3 days' trading range, especially with the daily stochastics being as bullish as they were.
The question now is, will we break out of this range to the upside? ES 852 area and NQ 1022 area. My guess is *probably so*
I think that NQ has upside potential to hit 1062 area this week. Of course it also has potential to hit 700....lol....*Anything CAN Happen!!!* I'll have to wait and see, just like everyone else.
Looking at my daily NQ 15 pd ma sloping up and my stochastics for same, near 80 band and still pointing north, I am inclined to *think* that we have better odds of a continuation higher. I have drawn an uptrend line from last fridays(14th) low up connecting this fridays low. I also have drawn a line at the same angle touching the highs on tues.- 18th and wed. 19th. creating an ascending channel. I will soon enough see whether or not price trades within this channel or not. It's just a guideline, nothing more.
On my weekly NQ chart I have a downtrend channel drawn, so unless the market breaks out of that, I'm not really looking for a whole lot of upside.(weekly stochastics on my setup still looking bearish) But hey, I'm a daytrader. So as long as it moves....place an entry, place a stop and let her rip. (still got work to do on that 'rip' part)
