Friday, September 30, 2011

A Familiar Pattern

The Qs have a pattern that has occurred twice before in the last 3_1/2 years -  a huge down month with a long tail, followed by an inside down month mostly in the range of the tail, followed by a rally.  Will the pattern turn out the same again?  If so, we should expect a penetration below the September low followed by a reversal back above the September low.  


Based on the lighter volume for the Qs on today's decline, the likelihood for an up day Monday, and the above pattern I exited my short position in the Qs today near the close at 52.75 for a gain of 5.31% in 3 days.  There may be another short opportunity, but I would be cautious about it.  I will mostly be looking to get long soon.

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