Crossing Paths
The market’s inability to hold an early
attempt to penetrate its 13-minute 15-MA, coupled with a three-minute cross in
the direction of the underlying 13-minute downtrend (yet another reason to read
last week’s lessons) teed up a potential trend continuation trigger this morning,
and it’s been down ever since, providing as much as $1.70 potential on a Q move as
of this writing. Along the way, there have also been similar trend
continuation entries in the context of one-minute crosses in the direction of
the strong three-minute downtrend, and a second three-minute price cross in the
direction of the 13 at approximately 11:50 a.m. ET. Volatility indices are
surging as of mid-day and caution at these levels is advised.
19, 2001 12:15 PM
I’ll be keeping my
eye on an emerging 13-minute divergence, which will only be meaningful if we get a
trend change on lesser time frames.
Good Trading!
P.S. I’m pleased to announce that I’ll
be hosting a two-day
QQQ trading learning forum immediately following TM2001 at the Venetian
Hotel and Resort on October 7- 8, 2001. It seems like we’ve struck a pleasant
nerve with the Q column, and I look forward to sharing my thoughts and views in
a live forum highly conducive to learning and interaction, as well as simply
meeting many of you in person. So whether you trade the Qs or watermelon
seeds, consider extending your stay just a bit and we’ll combine some very
intensive trading discussions and some fun!
For
a more in-depth look at how Don trades the QQQs, click here.