as far as the broad markets go, here are a couple of resistance levels on the 60 min charts of QQQ, SPY and COMPQ (nasdaq composite). although we are currently trading above the first resistance levels in pre-market, therefore, poised to gap above these levels, whether or not we close above them will be important IMO. as far as the active short trades, each trade’s stop should be set according to it’s own chart (if you shorted a stock on a re-test of recently broken support/now resistance, then a solid move or close above that resistance level).
although the strong moves down in equities on monday and tuesday did quite a bit to moderate the fact that the R/R was extremely favoring the short side as of the end of last week, i still believe that the R/R is still very much slanted to the short side, regardless of what the market do in the next day or so. for now, i remain nearly fully short and continue to focus more on the best looking individual stock patterns and sector etfs.
