Short Term Trading Member Forum

[denmo83]

The close today made for some nice gains to those still long in the markets, however, today's huge gap at the open couldn't be sustained.

I really wanted to buy the QQQ December 37.00 puts, but after the prior 7 days of gains, I was too rattled to do any trading. Those Dec put contracts did gain 35% from the opening bell to the lows of today's session.

IMO, we still may try for one last burst upward and I have Friday as a significant turn date.

With the negative divergence on the short term charts and the fact the Nasdaq has pierced the top of the bollinger bands for 6 days in a row, this upward bias can not be sustained. In addition, the entire body of today's Nasdaq candle closed out the top of the bollinger bands. In addition to the short term negative divergence, it is present in the daily time frame as well:

http://stockcharts.com/def/servlet/SC.web?c=$COMPQ,uu[h,a]daclyiay[db][pd20,2][vc60][iUa12,26,9]&...

In addition to the gloom and doom above, the S&P500 broke through the top of it's bollinger bands and we now have 3 higher prices, with 3 lower MACD humps, meaning more negative divergence on another daily chart. This stuff looks nasty. I'm truly hoping for quite a bit more upside, but I can't make any excuses for an ugly looking chart.

Any upside in the coming days should be sold into. I will be scaling into the December, January and March puts either tomorrow or Friday. It seems to me that Nasdaq1970ish needs to be tested before any more significant upside can be gained. I also have Jan.27th as a very important low point for the markets. I've got it circled on my calendar.

That's my story and I'm stickin' with it.

---Dennis