Larry,

Would you consider yesterday's NASDAQ price action to be a 2b? The open was a 2-month high. I don't recall how significant you want the high to be.

Steve

Steve,

If you're talking about the Nasdaq 100 rather than the Nasdaq, I do see a possible 2B from the April high. It's not a great one in that there are two other highs previously (I can't get a chart posted this morning for some reason) but it could be a tradeable one.

If we open higher it will probably take the previous high out on the open but that's the way it is with 2B's. The stops are very tight and the percentage of winners is not going to be high. However, when you catch one right, the profits can be very significant.

Larry

How about shorting QQQ at 37.45 with a 37.60 stop. I have the 37.59 was the last high. Is that too close?
h

Howard,

It's really close but as long as you don't mind having to try it more than once it's a legitimate way to do it. You have a clear reference point to go by to tell if you're wrong.

Larry