Advantage Qs
The Qs remain in the tight grasp of the bears
this morning and have continued the descent which began with last Thursday’s
loss of 13-minute trend support. Downtrend supports (for those who may be new
to the column, I purposely use the term “support” in such a context to
remind those locked into a “long” mentality that a downtrend is a
tradable trend with supports) on all key time frames have continued to serve
as strong guides to the intraday trade, specifically the three- and 13-minute
supports, and trend-continuation triggers remain the low-risk entry ticket in
such a strongly trending market. With respect to the larger picture, I’ll be
keeping a keen eye on the daily stochastic vs. price reading, which is currently
showing strength divergences vs. the Feb. 8 low, which is, of course, only
relevant if combined with trend reversals on lesser intervals.
Tuesday February 19, 2002Â
12:00 PM EDT
The strong
downtrending action has served to reaffirm what I consider to be one of the
greatest advantages of trading the Qs over individual equities, which is the
ability to short trend-continuation triggers without the need to fade the market
on pullbacks which carries added risk. Shorting a stock on such triggers, while
they look great on paper after the fact, are, of course, all but impossible with
the long-established uptick rule.
Good Trading!