While Friday's close didn't scream bottom, I opted to pick up some shares of ProShare's Ultra Nasdaq ETF (QLD) near the close for the following reasons:
- Thursday’s downside volume reeked of capitulation on some scale.
- Many positive divergences on multiple timeframes, including on the RSI below.
- Ability to reclaim it’s 200dma after Friday’s opening sell off.
- It was a hard trade to actually make when it came to clicking “buy”…. sometimes those are very profitable .
- Finally, I played the down move so well that my head was in a different place. I was able to respond rather than react to the market.
click to enlarge
