Above is my currency divergence chart, you can see here that point A was where EUR/USD confirmed the turn that had already occurred in AUD/USD and AUD/JPY, hence this is where I went short NASDAQ futures. In addition to this...
This chart above is what I use to compare the NASDAQ to other equity futures markets, so Dow, S&P 500 and Russell 2000. Again at point A you can clearly see all these markets diverging away from the NASDAQ. In addition to this my own custom indicator (bottom of next chart) was also diverging markedly lower suggesting a high probability for a turn lower in the NASDAQ.
This was really the perfect set-up, everything I was looking at suggested a short, I was filled at 2631.75 at 18:26. Market sold off immediately, at a later point 6 points lower within 2 minutes. Rather than close it I just moved the stop very close to the price, so as to allow continuation, if it came, whilst keeping most of the gains, if it didn't. It turned out that that was the end of that move. My stop got taken out at 2621.75 for a 10 point gain.
I'm pleased with that today, got in 0.75 points off the high of the day and took most of the meat that was available on the move.
There was in fact a further opportunity later for a long, but I allowed myself to be distracted, helping Miss Positive Deviant by taking (attempting to take) some pictures of the Aurora Borealis outside. Many pictures taken, none of them very good (it was quite far away), otherwise I'd have posted it.
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