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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: Gush who wrote (199)	5/18/2005 10:06:53 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 4814

<< I HAVE NEVER SEEN THE QQQQ THIS STRONG BEFORE.. HAVE YOU? >> QQQQ is extremely strong now, you are right. I think stronger than last August, at the V-bottom. Note that the $SOX was a participant at that time also, but is even stronger now: 139.142.147.218 139.142.147.218 But strongly trending markets are easier to trade. It's true you got in a day early as it turned out. I thought yesterday that we'd see much more selling today in the afternoon. We saw some, but not nearly enough to help your position. I think the major mistake was to buy front month contracts... you just left zero wiggle room for yourself that way, you had to be dead-on precise with your timing, and that's just too hard to do. If you had June or better yet July contracts, you could afford to be quite a bit more patient. So what to do... well, clearly you gotta close the position tomorrow. I think I would probably plan to close later in the day, and just bite the bullet and accept that most likely you'll end up with a loss here. My thinking is that there will be selling in the morning, then probably things will stabilize thru the lunch period. Then hope that everything is moving horizontal going into 2pm. If so, then you've got a good chance of a breakout to the downside, and so you might get a better price on closing the position, if they don't kill you on the spread. Then chalk it up to experience, and wait for the long position to appear. THAT trade will align you with the dominant and very strong trend. One thing for sure, daytrading front-month options is no walk in the park! You can win big, but you can also lose big. Personally, I prefer a lot of base hits to trying to knock it out of the park. Reggie Jackson ("Mr. October") was one hell of a hitter when it counted---but I'm pretty sure he still holds the league record for strikeouts! T