Approaching A Test Of Support
Earnings games
continue on the up-down-up-down S&P and Nasdaq futures markets. Thus
far, this morning’s trade has more than made up for the intraday chop of the
last few days with a classic early 3-minute trend break triggering a low-risk
gap-and-trap short entry. (A reminder on large gaps to
make sure your 3-minute chart reflects the overnight session.)
The hourly trend remains up and has been joined by the daily on both a price
and 5MA basis, which leaves us short on the weekly and monthly charts, with both
markets approaching a test of the weekly downtrend support which have been in
place longer than this trader can remember.
Keeping your eye on any hourly price vs. momentum divergences which may develop,
may provide clues into the sustainability of the current climb, as there is
ample room between market price and daily support in both markets, should we
turn down on the hourly.
ES (S&P)
Thursday October 17, 2002 11:15 A.M. ET NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
See
School and
Video for Setups and Methodologies
Charts ©
2002 Quote LLC
Thursday Thoughts
Wow, did
yesterday’s column fill up the old in-box big-time — and with some definite
emotion on both sides of the probability vs. "I’m right" issue. The
positive/negative ratio was about 90/10, and I’m still wondering how one of the
10% — who indicated this column has never been worth reading — found the
column to read.
On another topic, there’s an interesting article in one of the major financial
publications this morning discussing the death of "daytrading." (Most of you
know I don’t acknowledge that particular term, but we won’t go there.) I
suppose I should inform my spouse of the obituary, and am certainly glad that
basket-weaving merit badge I got some 30 years ago will now come in handy. I
just wonder where the record-breaking intraday E-Mini and ETF volume and student
profits are coming from, and where that magical demarcation point is that
separates "acceptable" longer term trading/investing and "silly" intraday
trading. Is it somewhere between using daily and hourly charts? Maybe it’s
5.821 hours. If you know the answer, please let me know, as it will help me
sleep better.
Lastly, I’d like to express my continued thanks for all of the mail supporting
my family’s health crises this year. Most of you know my spouse found herself
battling for her life in mid-summer and one of my young daughters was diagnosed
with a serious condition that will affect her for the rest of her life. Since
many of you have asked for an update, I’m pleased to report things are going
well, given the circumstances, and we’ve been able to adapt, thanks in no small
part to the support and prayers from may of you around the globe. When it comes
time to set the mouse and charts aside someday, that support will mean more to
me than you will ever know.
From the E-Mini Mailbag (always unsolicited)
Don, I have been using
your course for a few months. And as you said the biggest obstacle to
trading well is yourself. I was over-analyzing and agonizing over every trade.
Now I just automatically fire away and my results have been spectacular. I
rarely lose on any trades with your "system"…..nothing short of amazing to
me…..the hardest thing is waiting for the trade to come to me…..but they do
now, every day! Thanks again. –C.U.
Note to self: I’d better inform C.U. of today’s daytrading article.
Good Trading!