August 1st, 2013 QQQ 21 Minute Intra-Day

The QQQ gapped up very hard at the open today.  This was mostly due to positive news coming in on the economic front coupled with the Fed declaring it will continue to pump money into it's multi-billion dollar bond buying QE program for the foreseeable future.  After the gap up, it remained flat most of the day, then advanced even further beginning around 2:00 PM today.

I peeked at the daily, weekly, and monthly charts for the QQQ and this advancement will be short lived.  The weekly chart and monthly chart show that it's recent movements upward are following VERY steep trend lines that will be broken soon.  On the weekly it actually recently broke a steep upward trend, pulled back, and is now following a NEW steep upward trend.  Well, it was new as of like a month or two ago lol.

See that note that says -70 LMT?  I recklessly entered a PUT play on the QQQ anticipating a drop today, but I didn't use a trend/decision/action progression or anything of the sort.  I just bought the PUT options because I felt it "couldn't go any higher" which is probably the biggest rookie mistake I've made in a long time.

I'm airing that out here to remind myself that, even after 6 years, I can still make rookie mistakes.  I'll re-evaluate the position in the morning now that my head is clear.

Just for kicks here's the daily of the QQQ...

And also the weekly of the QQQ...

It doesn't have to fall far to get me out of the trade at the spot where I put in my GTC sell order for the options, but it needs to fall quickly, something I'm not so sure of.  Again, this was a very UNDISCIPLINED and ROOKIE trade, and I'll be damn lucky to hit my GTC sell order.