1 reply to this topic

[SemiBizz]

As I mentioned earlier, I'm up about $7 here on QID. I'm no fool, I can see we're not going to go straight down from here. I'm going to open a new position in QLD and hedge the bounces. There's a great opportunity for agnostic traders in this environment as the bulls and bears tear the fabric of the market to shreds pulling it in each direction (i.e volatility). I'll let you all stand around and argue the bull/bear market thesis. I'm just trading this crap... I don't have to be right, I just want to make $$$$.

Here's my thinking on QLD:

http://bigcharts.mar...&mocktick=1.gif

As you can see, there was a stealth sign of strength in QLD on Friday as... on greater volume QLD was unable to penetrate Thursday's low. My trading strategy would be to start a new position on a lighter volume test of Thursday's low... 76.38 with the target of testing Tuesdays record volume high of 84.89. That is an $8 trade, not too shabby. On the other hand if Thursday's low is tested on STRONG VOLUME there is no play...

High volume highs and lows beg to be tested. I'll be looking for that 76.38 test on the daily, nailing the support on the intraday charts to set up a tight stop and looking for the high of the 27th to be tested.

This might work, but if it doesn't then my QID is going higher, so it's hedged. And when QID gets under the high volume lows on vapor it's time to undo some QLD and buy some more QID.

Edited by SemiBizz, 04 March 2007 - 03:16 PM.

[mdwllc]

As I mentioned earlier, I'm up about $7 here on QID. I'm no fool, I can see we're not going to go straight down from here. I'm going to open a new position in QLD and hedge the bounces. There's a great opportunity for agnostic traders in this environment as the bulls and bears tear the fabric of the market to shreds pulling it in each direction (i.e volatility). I'll let you all stand around and argue the bull/bear market thesis. I'm just trading this crap... I don't have to be right, I just want to make $$$$.

Here's my thinking on QLD:

http://bigcharts.mar...&mocktick=1.gif

As you can see, there was a stealth sign of strength in QLD on Friday as... on greater volume QLD was unable to penetrate Thursday's low. My trading strategy would be to start a new position on a lighter volume test of Thursday's low... 76.38 with the target of testing Tuesdays record volume high of 84.89. That is an $8 trade, not too shabby. On the other hand if Thursday's low is tested on STRONG VOLUME there is no play...

High volume highs and lows beg to be tested. I'll be looking for that 76.38 test on the daily, nailing the support on the intraday charts to set up a tight stop and looking for the high of the 27th to be tested.

This might work, but if it doesn't then my QID is going higher, so it's hedged. And when QID gets under the high volume lows on vapor it's time to undo some QLD and buy some more QID.

Not a bad strategy; from a timing point of view I would be more inclined to take it the afternoon of Wednesday the 7th. MDW