As Long As Support Holds…
Intraday chop with a downward
bias has been the early theme of this snowy Tuesday morning,
with an abundance of timing conflicts providing few
clear low-risk setups aside from a mid-morning pullback short entry on the
13-minute downtrend. Specifically, both the S&Ps and Nasdaq markets enter midday
hovering just north of critical daily supports and lower hourly Bollinger Bands,
yet in the context of intraday 13-minute and hourly downtrends.Â
On lesser timeframes, the one, three and 13 have also been at odds at times,
which has frankly left many opportunities in the “Risk one to Make one” category
which will typically results in tire-spinning P&Ls over the long haul. Short
positions established off yesterday or this morning’s 13 or hourly guidance
should respect daily support until violated, which has been in place for a few
weeks. Traders looking for a daily pullback long, as long as support holds, may
want to watch for reversal triggers on the three and/or 13. Worst case is
you’ll have a heckuva better entry and much tighter stop if your premise is
broken, compared to those getting stuck in yesterday’s media hype fleecing
ES (S&P)Â Â Â Â Â
Tuesday December 3, 2002 11:30 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
Lastly, I was completely awed by the
email feedback to yesterday’s column, which while I don’t keep count, ticked as
high on the reader interest meter as anything since we started this trek some 20
months ago … and we’ve had a couple of doozies during that time. Here’s a
quick follow-up to Warner’s story … come to find out the guy, who had
previously refused to be examined, learned he’d been playing with a broken
finger. Duh! Kind of like thinking one can trade effectively with a 102 degree
fever.
I’ll certainly never come close to categorizing anything I write in the “Pearls
of Wisdom” Hall of Fame, and as I’ve said before, much of my daily rambling
simply reflects various lessons and goofs from periods in my own life. I suppose
Art Cashin would respond by saying that even a blind squirrel can find an acorn
every now and then, and I’ll leave it at that.
Good Trading!
Â