Wednesday, March 6, 2013

NQ Opening Intraday Divergence

Sometimes we don't see what the chart is plainly showing us, when I saw the 3C plunge on the open in the NASDAQ futures of the intraday chart, I new something interesting was going on, I'd call this a stop run with VERY little hesitation.

 Right at the 9:30 open, 3C plunges to a leading negative low, shortly thereafter NQ makes a new low taking out 17.5 hours of trade and hitting levels not seen since yesterday's close, any stop in NQ placed at overnight lows was just taken out in a matter of a minute or so, consider that vs nearly 18 hours of trade since yesterday's 4 p.m. close, this is exactly why most professional traders stay away from early a.m. trade as the market is about running stops and orders put in, many by people who go off to work at a normal job and waste a round trip commission, this is also why I never put an order on the books (stop or limit), only when the order is ready for execution, why show then your cards?

The Q's were negative right off the open and quickly ran don below the first level of support, yesterday's close.

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