QQQ Trade on Jul 9, 2020 09:34 from spyrosz: Tradervue User Stock Trades.

The "difficult" short of the day, but the trade I made most $$, which is a bit frustrating.

Quite over-extended from 9/20SMAs in the daily timeframe, RSI>70, most tech names quite streched as well.
It was gaping higher premarket, above the top of the shooting star candle=$260.75, which was put two days ago.
I was looking for a reversal, and a move lower to $256.5-257 at a minimum.

Tried to push at the open but seller held it down below $262.2s. Same time SPY and esp. IWM was rolling over hard.

Got short, risking tight stop above HOD=$262.2s, expecting the 1st leg down to S1=$260.75.

Covered on the way down towards target. Held small with stop above HOD.
Held S1 and started forming a VWAP triangle support break of S1.

Scaled back into the short, risking HOD, for the 2nd leg lower towards S2=$256.5-257.

Well, S1 held and QQQs reclaimed VWAP. That put me on the spot as I wanted to be short until new HOD, but I didn't like holding the size from the entries below VWAP.
Decided to trim the size I added below VWAP expecting the break of support, in order to add it back at a better price closer to stop (HOD).

Trimmed the momo entries below VWAP, scaled in back to the short, risking HOD as QQQs were making a lower high and was starting to roll-over.

Covered some in-front of S1, in-front of previous day close=$260 and at target $258.

A couple of notes:
(-) I should have added another tier to the short, after it failed to clear VWAP after 2nd bounce from S1.
(-) Instead of shorting the strongest index, I should have focused on SPY or IWM. Much easier/cleaner price action and downward momo than QQQs.

SPY and IWM charts for comparison
-- While QQQs held S1, bouncing hard back to HOD, SPY was barely able to penetrate VWAP, while IWM rejected the m. average to the penny before rolling over.
-- Short the relative weakness, go long the relative strength. Go for the easy money.