Will They Stick — Or Stink?
Whew!Â
Skilled traders have had a bonanza of opportunity
thus far this morning as we’ve had several low-risk course triggers to guide the
early trade. After seeing the
(
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PowerRating) tick above 50 shortly after open,
trade has been a virtual one-way street up. Technology has been the early leader
with the
(
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PowerRating) up over 5% as we approach midday, and all of the
top-tier S&P and Nasdaq leaders are green as we go to press, although
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GE |
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continues to ride the unchanged fence.
In terms of trade opportunities, I suppose we can begin with a textbook early
13-minute downtrend continuation,courtesy of our 3-minute trigger at 9:50 with 7
point ES or NQ potential, then some beautiful reversal entries with perhaps the
most notable being a mirror image of the 9:50 trigger at 10:30 on ES (a tad
earlier on the stronger NQ), as both three and 13 triggered long for 18 points
in ES potential and 30 on NQ.Â
Now speaking of “potential,” since I get some mail on that, does that mean
traders should have nailed the full amounts? Heck no and if you did, I’d say
your trade management was terrible. Thus the emphasis on “potential” as several
pops into the upper Bollinger Bands gave, provided excellent guides to scale out
into the retail panic.
Going into the afternoon session, all eyes at this end will be on whether the
morning trend supports will “stick” — as opposed to “stink” which has been the
theme over the past few weeks. Market reaction to any pullback toward 13-minute
and hourly supports — especially on the weaker ES — may speak volumes in terms
of whether we’re seeing the beginning of a more lasting turn or just another
bear pop, albeit tradable.
ES (S&P)Â Â Â Â Â Â
Thursday October 10, 2002Â 11:30 A.M. ETÂ Â Â Â Â Â Â NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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Trading!
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