Preparation And Focus Pays Off
The ETFs have opened to a
continuation of yesterday’s bearish inverse cup and handle
on the 13-minute chart, which I pointed out in yesterday’s
column, providing ample profits for the prepared and focused. Thus far, the
Qs have traded as low as $21.80 and the SPYs as low as $86.44, or $0.80 and
$2.45 in profit respectively from yesterday’s midday charts. For those school
students who might have missed the entries and respective triggers, please go
back and review the trading simulations — it’s all there, and frankly doesn’t
get much clearer in terms of reward/risk ratios, especially when coupled with
the longer-term support break.
As we approach midday, both indices are in daily, hourly and 13-minute
downtrends (OK, technically you can add in weekly and monthly), and intraday
traders can keep their eyes on any turns initially on the three-minute for
potential bounce plays as we reach interim oversold levels. Longer term, if you
don’t know how I feel about needing a turn in hourly charts before positioning
for low-risk swing longs, then please go back and review recent columns.
Going into the afternoon session, any approaches to the 13-minute or hourly
downtrend support should have you looking for trend continuation triggers so
long as they remain intact, especially if the three-minute stochastic goes
vertical and the angles of the larger time frames remain sharp. Longer term, the
reward/risk ratio will start to skew toward a bounce as the volatility
increases, so remain flexible as always.
In the department of redundancy department*, the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) is yet again
hitting new yearly lows while financials are adding to the downtrend
acceleration in the broader market.
Wednesday
September 18, 2002 11:30 A.M. ET
SPY
Moving Avg
Legend: 5MA
15MA 60-Min
15MA
See School
and Video
for Setups and Methodologies
Good Trading.
* Think that one over if you missed it.