Capital Preservation
No, your monitor is likely working fine,
as the market has been doing a pretty good impression of a stagnant pond this
morning. In fact, all indices are plus or minus less than 10 points as this
column goes to press. Nevertheless, the Qs remain in an hourly downtrend, albeit
with dropping absolute stochastic levels which only become relevant if we begin
to turn up on our smaller intervals. Yet aside from a few quick mini-trend scalp
opportunities, capital preservation has thus far been the name of the game as we
wait for the market to make its next move. The NQs have thus far been defending
the 1600 line in the sand fairly well, which will likely be key going forward.
Friday December 14, 2001
12:00 PM EDT
(1)
Approx. Equivalent QQQ Price
Longer term, I’m
keeping my eye of the weekly NDX chart which is setting up for a potential
handle bounce opportunity on any further retrace. With respect to intraday
positioning, one factor I’m keenly aware of is the potential for market surges
on any news of Bin Laden being captured, whether or not such a move is
sustainable. As such, being flat during stagnant times may help guard against
being caught on the wrong side of a spike.
Good trading and
have a great weekend!