Caution Still Advised
Despite the early
retail fleecing gap, both the S&P and Nasdaq markets remain
somewhat rangebound and are trading near the middle
of Friday’s range as we approach midday. As was the case on Friday, volume and
pace have been on the modest side, as market players reconcile several trend
conflicts on the 13-, 60-minute, and daily charts.
The three-minute chart has been a strong early intraday guide in guiding
profits, especially on the short side when it triggered short, upon completion
of the early fleecing at about 10:00am ET, which provided up to 10 points of ES
profit opportunity. As I write this, the three-minute is testing its first
potential turn in tide to the north, amidst a midday 13-minute downtrend and
hourly uptrend.
Given the abundance of conflicts and rather choppy conditions, caution is
advised as we await better conditions. In terms of what I mean by “caution,” it
basically means that scalpers can continue to scalp to lock in sure profits,
while longer-term intraday and multiple day traders are likely experiencing a
similar yet hopefully shortened version of the NFL’s bye week (which of course
didn’t do the Patriots much good).
ES (S&P)Â Â Â Â Â
Monday October 28, 2002Â 11:45 A.M. ETÂ Â Â Â Â Â Â NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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