60 minute trading strategy in action, or, wash, rinse, repeat.
Q’s remain strong in PM action mainly because they have little exposure to financials. Same cannot be said of $RUT/IWM & $SPX/SPY. At 8:56 A.M., ES is off 9.25pts but this is most likely going to be bought back up so that it can be sold into, at least that’s what I think.
As anyone who’s been following this blog for any length of time knows, I’ve been using the 60min trading strategy exclusively lately to time entries and exits. That’s not 100% accurate because per the 60min trading strategy I should have gone long last Thursday, the 12th, but I was expecting more down side so I held off. The break of the falling trend line at last Friday’s open forced me to go long. As far as I’m concerned, when the RSI 14 gets above 70 on the 60min charts you are playing with fire. I figured that the mad men at the helm could hold the Q’s up for 2-3 days, which is what they did in the last cycle, so I didn’t sell Wednesday when the RSI first pushed above 70. Yesterday I placed my ‘sell’ order for TQQQ when the Q’s were trading right around $65. I gambled that THEY would spike the Q’s up sometime during the session and had calculated a 10% gain based on my entry. I put the order in and left on my bike ride. My gamble paid off and my order was filled within pennies of the daily high on TQQQ with the RSI on the Q’s having spiked to 77, an unsustainably high reading.
60min chart of Q’s showing entry points and exit points per the RSI 14.
I’ll just be watching from the cheap seats for a while.