Bigger Picture
I wasn’t sure whether to
start with my "market never goes straight up" or
"respect the 13-minute 15-MA until broken" speech, yet in any event,
Wile E. Market finally realized shortly after 11:00 A.M. EDT that there are such
things as gravity and pullbacks — as we were approaching weekly resistance —
and finally broke key 13-minute support, which has triggered a substantial
pullback as I am writing this. The Qs have retraced over $1.20 on the trigger, a
move that was exacerbated after the fact by the very unfortunate anthrax report
in New York.
It is at this time that I
must digress for the moment. While trading is our business and livelihood, I for
one certainly hope and pray for the day when we are able to profit from natural
market movements that are unencumbered or aided by events that take a much
greater priority in the grand scheme of things. Suffice it to say it can be very
difficult to stay focused on trading during these times, and the decision to
trade or not to trade can be very personal. As always, we’ll try to emphasize
the technical aspect of the market while remaining sensitive to greater
priorities.
Friday October 12,
2001 1:00 PM EDT
(1)
Approx. Equivalent QQQ Price
We’ve also lost
60-minute 15-MA price support for the time being, which may become resistance to
the upside as the afternoon progresses.
Good trading and have a
good and safe weekend.