Trading This Market - NASDAQ

Here is a little tip for you day traders out there. I don't post my day trades on the indices (some I do) because it's very complicated. But I have been making some side cash on the Q's (QQQQ) and here in my strategy. In my view, the clear market leader for the NASDAQ is only one stock and that is AAPL. The first part of morning was too difficult but around 2p I saw weakness in AAPL, so I went short the QLD at $39.06 and stayed short for 40 minutes (until AAPL recovered). I covered at $38.52, then bought shares of QLD at $38.58 and sold at $39.01 near the close. Again, my guide is AAPL and these are tiny day trades and incase AAPL sold off further, I could short the QLD again. Regardless I made about 3% day trade on this Friday, which is damn good in my view. Anyways, if you are a day trader of indices, it is a fun and interesting thing. I do it sometimes but only when I have the time. I mean there are traders who do nothing but day trade the indicies and take about $10,000 or $15,000 and try to make $300-$500 a day and if your good, you can do it. FAZ and SRS are other tools that are famous day trading tools. It's not my style, I swing trade but if you are new to trading, try testing it on "paper" (trading without real money).

Now for the market. The market in general seems to be fading the 9:30a open on good news days (selling off) and gapping up on bad news days at 9:30a. This is the same thing it did in 2006/2007 bull markets and in the late 1990's. The key is to remember this because if news seems very, very good - buyers flood the gates at 9:30 (like friday) and by 10a the market sells off by shorts because it's a classic "sell the news" fade. Basically, all the momentum is at the open and cannot carry through out the day. Anyways, we shall see if this continues but if it does, now you know what the pros are doing out there.

I like to keeps it reals.