Buyers On Deck?
For the first time six trading
days, the Qs are just off their intraday highs
as we approach midday,
with a critical decision at hand with respect to whether the current hourly
downward remains intact, or whether buyers are willing to step to the plate in
sufficient strength to extend the late morning 13-minute climb which, thus far,
has seemed to lack conviction in terms of both pace and volume. From an
underlying equity perspective, the morning has been a mixed bag with
(
QCOM |
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PowerRating)
— earnings and analyst comments — and
(
MSFT |
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playing the early role of Q anvil, and the
(
$SOX.X |
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PowerRating) displaying a bit of a
schizophrenic nature as it alternates from strong to weak and back to strong.
Bottom line is the recent downward Q action has been so strong, that turning it
is similar to turning an aircraft carrier against the tide. Unless and until
buyers step to the plate in sufficient strength for the Qs to clear resistances
as strong as epoxy, the pops will continue to reflect more short-covering and
whipsawed longs more than anything. Yet I’m admittedly focused more on long
setups from a reward/risk perspective, shorting ONLY if there is a three-minute
trend on my side, while keeping an eye on the volatility indices given the
extreme nature of the established down move which thus far reflect a decent move
off their early morning highs. (Tonight’s Timing Indicators should be
interesting.)
I’m pleased with the
continued student feedback to the QQQ
school, which as noted in this unsolicited e-mail, includes principles and
strategies which can be used in markets beyond the Qs:
"You can add me to your chorus of appreciative students. I
purchased your tapes and the simulation course because I seek to find tools that
can help me become a little more mechanical and a little less intuitive. I am
very impressed with what I’ve seen and reviewed. I am on my second review of the
tapes and then will move to the simulation trading. Your candor, knowledge,
experience and good instincts show through loud and clear. You are an excellent
teacher, and I’m glad to be able to benefit from your decision to share your
insights. I’ve
been experimenting with your setups for seven days now and clearly see their
value. In fact, on Wed the 10th, your "favorite trigger,"
the MA cross in direction of larger trend, worked 4 out of 4 times in the SPs."
K.M.
Good Trading!