Call It A Trader’s Market
Call it a trader’s market as Q
and SPY trading opportunities — along with those of their respective E-Mini
counterparts — have been plentiful this morning as
a slew of economic data combined with yet another illiquid overnight Globex gap,
investigation of potential terrorist activities in Florida, and explosion rumors
combined to present traders with an extremely jittery market and outstanding
oscillations on this Friday the 13th. Yet despite the wide array of news, our
charts and triggers continue to lay the foundation for low-risk entries as we
can leave the news interpretation to others.Â
Frankly, I can’t think of any of our classic intraday setups — whether one- or
three-minute turns and cups after the gap or 13-minute continuation triggers on
the initial subsequent climb — that didn’t occur this morning. And on the
larger picture, longer-term daily shorts using the Wednesday/Thursday hourly
trend break trigger would have used the opening decline toward the lower daily Bollinger
band to scale out into initial profits as we discuss in the school,
and the hourly 15-MA can now serve as an effective trail on remaining positions,
guaranteeing profits on the trade. Not a bad way to end the week.
As we approach midday, the indices are near their intraday highs and on the
13-minute fence in the context of hourly, daily and weekly downtrends which
continue to serve as tailwinds on shorts and headwinds on contra-trend longs on
the lesser time frames. Keep an eye on the climbing 13-minute stochastics into
the afternoon which are climbing quickly without much reaction in price, which
may set up afternoon shorts if triggered. With the 13 on the fence, it
will likely be a battle between (1) potential overbought condition amidst the
hourly downtrend and (2) 13-minute trend strength should it begin to emerge to
the upside to challenge the hourly. Yet given the morning and my personal
preference not to encourage much trading on Friday afternoons, I’ll likely take
the afternoon off and get started raking some leaves.
QQQÂ Â Â Â Â Â Â
 Friday September
13, 2002Â 12:00 P.M. ETÂ Â Â Â Â Â Â Â Â
 SPY
Avg Legend:Â Â Â 5MAÂ
 15MA  60-Min
15MA See School
and Video
for Setups and Methodologies
Good Trading and
Have a Great Weekend!