Waiting For The Folding Kind

• July 23, 2002
• Don Miller

I’ll be frank
this morning. 
Ignore the press and pundits telling you this market
is untradable — especially from the long side — as our proven intraday rhythms
and setups continue to provide profitable trade after trade. Yesterday was yet
another classic example of three-, 13- and 60-minute triggers and
support/resistance points aligning in such a way. Are we in a longer-term
downtrend? You bet, and knowing that continues to separate the adults from the
children and the astute
(
QQQ |
Quote |
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PowerRating) students who exit any short-term longs into
the well-established trend resistance points. 

I again share
Exhibit A below to summarize yesterday’s opportunities and the
trading rhythm that has been with us for months now. The beauty of the extreme
intraday volatility we’re seeing is an abundance of trades on both sides as we
await the eventual turn. On the long side, that basically means picking up
quarters and half-dollars while waiting for the folding kind.

In terms of today’s trade, the techs and Qs continue to outperform the broader
market by treading water as everything else continues the Titantic-type tankage. What
is needed for a lasting turn? Shut off the TVs (it may help cut down on the
nausea as well) and look for a turn in both the 13-minute and hourly winds …
until then, keep picking up the long profits into resistance or short profits on
the downtrend pullbacks, with rock-solid tight trailing stops.

Tuesday July 23,
2002  12:00 P.M. ET

 

Good Trading!

Don Miller