AAPL traded very poorly today ahead of earnings, closing at the lows. Maybe the market just suspects the same old dance routine with their earnings release (better than, or as to be expected earnings numbers, with a conservative outlook going forward).
I'm still holding my very small position in BNI, it started to move this afternoon, but suffered the same fate as the rest of the market when the broad selling took hold.
Just for the sake of having a chart up today, here's QLD. It can at least act as a study on how you might go about trading such a choppy and indecisive market. In hindsight I suppose the market was plenty "decisive." There was little conviction in buying (yet again) and plenty of jumping in when the short signals are triggered across everyone's screens. Anyway, let's check out QLD:
If you were quick and decisive you could have jumped in long (out of the opening range ascending triangle) and rode the move out until you started seeing those upper-wicky candles, or the doji/hanging man-like candle.In my opinion, the key candlestick to get short for me would have been that gravestone-like doji where the 20- & 50-EMA's converged and the faster EMA (purple) was sloping down. At this time also the Macd had ticked negative.
Price chopped around S1 before making new lows on the day (corresponding closely with previous day's lows). A bullish tweezers with the bullish momentum divergence was a good probability sign to get long.
Price returned back to S1 for more chop. From noon to about 2:15 the chart looked a lot like an inverted roof, which would have put a measured move to the upside back at around the pivot point (yellow line). Price never made it that far though.
Chop ensued again around Vwap (red dots) for about a half-hour until we got that big momentum candle taking price back to S1 and beyond. The same "forced-selling" excuse seems to be our reasons behind why we're getting these 3:00p.m. snowballing sell-offs.
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