QID - Support - Go Long

Symbol: QID
[X] Entry
Duration: Short Term
Direction: Go Long

QID is the ProShares 2x Inverse of the NDX ETF. It's a common trading vehicle in that it offers 2x the movement of the NDX and is quite liquid. On the chart you can see that we are nestled up against support here. . Note that this is the second time down to this support area and usually, if it's going to break we will see prices mill around down here, try to spike back up but quickly reject and come tumbling back down for the third attempted try. So, odds are we probably don't break right here right now even if we are going to break. Add to it that the volume is drying up here. Even if we are wrong and it does break, we can take this trade on for around $52 with a .50 cent stop and shoot for a retest of the top of that bar down from Tuesday at $53.45. That's about a 3:1 reward to risk and it comes on a trade that won't likely last more than two or three days. Within that time period we will either have made our money or lost it.