1 Stochastic Up turn, 2 Gap closure --> $480 profits
5 mins Nasdaq Emini 100
Hi,
Market gapped down this morning, what's the reason for this gap down? Well, apparently the Chinese economy expanded faster than expected and Chinese government again expressed concern about over-heating and indicated intentions to raise interest rates... This sent the Asian bourses down... It's not surprising the the Nasdaq, S&P 500, Dow should open lower...
Think about it again, the influence pending interest rate hike in China is little, if any on the US economy on a short term basis and yet we opened with an almost 10 point gap down. This enables us to view it purely technically, there isn't a key fundamental change in the US economy...
I longed 1 contract at 1836.5 after price began to start it's crawl upwards and Stochastic turned up.. It showed signs of further closign the gap and I longed another 2 contracts at 1838. The ride wasn't smooth, there were huge pull backs along the way, but I stuck onto my position because neither Stochastic nor MACD gave an exit signal... My profit target is simple, 1845.5 which is slightly below yesterday's close..
At 10:25, my profit target was hit and I am automatically out with $480 profits.