Observe & Trade*

Monday, December 13, 2010

Almost flat market day today, and this 5-min. chart from QQQQ which is identical to NQ from the e-minis shows a short trade at the last hour.

By observing the pattern one hour or two before the close, you cannot make a conclusion where it is heading.

But the 20 ema is descending, so the confirmation is to short this index with a tight stop.

NQ moves $10.00 per o.50 points, so if it moves 10 points, you have a gain of 20 points for a profit of $200.00.

Showing the trade completion of Russell 2000 (TF) today from this 5-min. chart.

Entry at 768.60 points on long.

Exit at 777.00 points for an +8.4o points gain.

TF moves $10.00 per 0.10 points, that equals to +84.00 points.

That amounts to $840.00 for a one (1) contract trade.

Not bad for a one contract trade!

After intense battle in the opening today, the market settles a bit and this chart from Russell 2000 offers an entry for long.

It's a profit taking day (today, Friday) that's why traders wants to go home with profit.

ES and YM were so volatile early as well as NQ.

TF not much, maybe few participants are still trading (playing) this instrument.

Looks like TF is more quiet to trade than the three.