October 30, 2019: Part II

The QQQ sets up as a buyable pullback, using the 3x leveraged ETF version above Wednesday's high as a pivot and Wednesday's low as a possible stop-loss pivot. This would equate to 3.1% trade risk. If the setup does not trigger Thursday, it is negated.

-- Today is a reversal bar, as discussed in the October 28 video. Premium subscribers who have not viewed this video might find it of interest.

-- Price pulled back neatly to touch prior support.

-- While this is technically considered a swing entry since it is a pullback, it is actually a play on a potential breakout of the three-month consolidation. Thus, it lends itself more as an entrance to a position trade rather than a 1R scalp.

-- For those who entered on the System R idea four days ago as shown below, this new idea could be used as an add-on trade, with each position managed on an individual basis.

-- The risk is Friday's looming data docket, with both NFP (monthly jobs report) and ISM report due out. These are the two economic reports that tend to generate the most price movement.

-- Correction: In today's Marder Report: Part I, it was mentioned that the Nasdaq earlier this week stalled just below its record high. This should read "three-month high."