I have published a special report showing trading strategies in the QQQQ.  If you followed the update published by Tuesday Morning you saw that the short term signals to sell short the QQQQ were hit in the morning and the short term signals to BUY the QQQQ were hit afterwards.  In tonight's update I show a technique I have gone over in the past but is good to review.  It is the use of 'fractals' in short term trading.  Basically as pointed out in last night's update;  I showed the action or potential trigger to sell short.  Wait for a double break of the trend using 10 minute charts for short termers.  The trigger is when the trend had a double break of the trend with the second breaking bar going below (in the case of selling short) the low of the first bar.

One technique I have gone over in the past is for cautious short term traders to use the high of the first breaking bar as a stop for selling short..( the low would be used for going long).  This technique will 'hopefully' avoid any unnecessary losses.  I show, with the use of charts, how this technique would have been used Tuesday.

I also show some potential trade set ups and how to manage the trade taken today if you BOUGHT the QQQQ per the BUY Signal being Triggered.  BUY signal (using short term charts) was issued with the double break trigger.  Extreme caution needs to be expressed for anyone who took this trade.  The BULLISH TREND line was HIT.... Lock in profits

  Some caution needs to be emphasized due to the mid term trend indications.  As mentioned recently; once the top is in a quick reversal for the mid term trend is very possible.  Cautious traders can use a trailing stop/loss as a possible technique to lock in profits.  The BULLISH trend line shown in Tuesday morning's update for the QQQQ was HIT.  NO BREAKOUT IS EVIDENT. Yet.  This may change.  JUST PROTECT POSITIONS. Mid term reversal is possibly imminent.

Click here for today's ShepWave Special QQQQ Update.