Another good quote from dbphoenix was "If you're in, no reason to exit unless there's a serious breakdown"
Point is that if one had entered when I suggested, two weeks ago, there is now no reason to exit simply because we've hit a number that may now no longer be relevant.
I am still following closely and I appreciate all the little tidbits that you leave here and there (which by the way are hard to find now these days with so much going on in the P&R forum! ). Shame there isn't a thread going on right now such as with the Ghost/Son threads since I'm finally seeing things better, but I certainly understand how its just the same thing over and over again, and I am using those threads as excellent teaching tools nevertheless. I had a little bit of trouble with SLA, for personal reasons obviously, but what I am learning so much from now is your discussions about rejections, areas beyond which traders can't find trades, and simply your explanations about how price moves and the clues that we can pick up on based on the road it takes to where its going. Anyway, just wanted to let you know that I'm sure many of us are still following along even though there isn't a dedicated thread to it at the moment.
Nothing new to report here (see the last few posts above). If you're in, stay in (it's been 200 NQ pts now; 100 ES pts).
QQQ is all about APPL/MSFT/INTC these stocks are fundamentally very strong with huge buybacks right now so there is no reason for this to turn.. Google is one of top 5 holdings also but hasnt been ripping as of late
The NQ came within a couple of points of violating the last swing low. Ditto the ES (+/-). Still no reason to exit if you bought at the proper level, but be cautious. (Those who follow this stuff know that both the NQ and the ES are at the tops of their respective trend channels.)
If I may ask Db, is this the swing low you are talking about at 4054.50 from August 28? The higher one at 4062 which formed on the 29th and provided support yesterday was in fact breached today, during the overnight session. It was such a quick penetration though and price came right back up that we could almost say that 62 provided support again overnight at that level. Is there anything more prominent about this level at 54 rather than 62? I see that it did form a double bottom on the 28th. Could this therefore be seen as stronger support and hence once breached provide a greater chance of more weakness since it was a stronger level than 4062?
Yes. It's clearer on a daily chart. Even so, if one bought when he should have, there's no reason to panic just because price has retraced a little. OTOH, one should plan in advance what he intends to do if price continues to fall (note that several people have called for a fall more than once in the past week, and yet here price is, holding steady).
Oh yes, I see what you mean.... Thanks! That 54 certainly stands out while 62 gets a bit lost. (shown at E) I have carried forward some of the other swing lows on this daily chart and its interesting how at A price penetrates the previous swing low by only a little before price going back up. At B, price penetrates its most recent swing low and continues down, going through C, but this penetration was also bought up, and when price gets to D, this level of support holds. Based on this, I can certainly see why you say that given where we are at E, there is no need to worry yet since the most recent swing low hasn't been penetrated. But is it fair to say that if it breaks and its more than just a poke that the drop might be severe since there is no swing low lower down that is close? And another question if I may. The swing point at B, roughly 3929 that didn't provide support since price went through, could this be of any significance now since price didn't in fact hold here? Would the next swing low in fact be all the way at F, roughly 3882 that might provide some support, simply based on just this daily chart of course? (ie. Once a swing low is penetrated, does its significance greatly diminish if price goes back up and comes down again since it never did act as support and hence 3929 wouldn't mean much to use now?)
If you entered at D or F, the rest is irrelevant. If you're trading more than one contract and haven't already planned your scale-out, then do so now. And if price reverses on you, plan in advance how you're going to scale back in.