Fade Trades

This morning's gap down on horrible Global PMIs is volatility on the rise, when that happens, unexpected things happen and small divergences often get run over.

I'd like to see this morning's opening indications as some of the gaps have taken out the last 2 days trade, but if I were to engage in fading the opening gap, it would be in the SPY and maybe the IWM, not so much the QQQ at this point until we see something. ES and TF at least have small intraday divergences on the open, NASDAQ does not, but again, these small divergences are easily overrun when fear takes over.

To be on the safer side, you might look for at least a intraday double bottom before attempting an upside fade and I wouldn't be attached to it too long....