Chicken Little…
Knowing important levels and key reversal patterns, particularly on days like
today, can be the difference between making money and being sucked in with the
rest of the crowd.
09:26:50
In spite of the bearish news out of
telecommunications after the WorldCom (WCOME)
announcement, the pre-market indications have been holding up rather well in the
latest selling in the Globex futures. Positive news out of a couple of Dow
components could help stem the tide as well. 3M (MMM)
beat is consensus estimates and has increased guidance for next quarter, and
Procter and Gamble (PG)
was upgraded and has ramped up its stock buyback. The US Dollar (DXU2)
is stronger Monday while the overseas markets have slightly weakened on the
opening day of their week. Another positive sign in pre-market action is the
tech issues leading in relative strength to the overall market.
All we heard this morning was to get ready, because the sky was falling. As
you know, this was not the case, either on the open or later in the day.
If you don’t believe the hype, and use the volatility band
levels given each morning in one of the first posts of the day, you are not
caught flat-footed. How much of each move you would have been able to grab will
vary, based on your style of trading and risk parameters, but the point is to not
get caught up on what the squawk box is saying, and to trade based on reality.
Until tomorrow,