MNQH3 Trade on Dec 21, 2022 10:05 from BanalityOfEvil: Tradervue User Stock Trades.

PLAY

QQQ – intraday trend long

CATALYST

Yesterday QQQ Leveled off, finding long term support at 266. Premarket NDAQ futures have traded up through yesterdays HOD. Some bullish macro-economic news is hitting the market between 8:30 and 10am which could lead to a powerful bounce opportunity

TRADE IDEA

Use MNQH3 to express the trade

Do not get long right out of the gate. Allow news to digest and market to pick a direction.

After 10am the final news will be released and market could trend back up to Fridays lows of 273

Wait until 10am to enter a position to avoid some volatility

SETUP QUALITY

B – the overall market is extremely weak, but the technicals and daily price action are suggesting a bounce. With bullish news, and an expectation of a “santa clause rally” on the mind of the market, there is a good chance that we could trend higher targeting 272.56 followed by 274 and even possibly 275.37

BIG PICTURE

QQQ has sold off for 5 straight intraday sessions before leveling off yesterday

Home sales and consumer confidence are due at 10am

PLAN

Allow market to trade until official numbers come in. if numbers beat the consensus, then look for a place to get long. Trade small size because I have been on less than a “hot streak” in my futures account.

REASONS TO SELL

Stopped out
Target hit
Macro bearish new event hits market

EXECUTIONS AND PRICE ACTION

@10am - Great entry followed by me chickening out, taking the profit, and then having to re-enter. Followed plan and did not just try to slam in long on the opening print, although upon review there was a more aggressive but speculative entry at premarket lows after the opening print dump.

Since my plan was to wait for the final news to come in at 10amEST, I stuck to it and was able to get a good entry. Price moved up quickly into my 1st profit zone and pulled back 30 points, but then kept bidding up so I added.

With no real gauge on how high this would go I took profit at the top of my 1st profit zone on half the position which was yesterday’s lows. The market has been so weak, and I did not want to give back profit so when price started floundering, I took the rest of my profit slightly above target.

I tried to re-enter 2x but got stopped out (tight stops) did not want to give back profit.

KEY TAKEAWAYS

Took profits way too early, I am new to futures and am not used to managing the inherent volatility yet

I need to gain a better grasp of the range of MNQ before I can commit to trading larger size

It seems that the average range from LOD to HOD has been about 150 points, upwards to 300 points on days with important macro news, especially when at the top or bottom of a monthly range

Decent little trade, excellent technical analysis and planning for how to get into this, all zones were marked before the market opened.

Need to work on sizing bigger on these higher conviction ideas