Digestion
The Qs have been
slightly rangebound this morning as the market digests Friday’s run,
having held 60-minute support on the early morning retracement. We have growing
consolidations on multiple time periods as we approach mid-day and are currently
trading just south of our key three- and 13-minute 15-MA supports, which makes
me slightly bearishly biased until we cross to the north. Keep in mind we have
daily resistance to the upside and 60-minute support to the downside which may
provide us with some market chop for the time being, yet the three-minute trend
should show the way.
MondayÂ
August 27, 2001Â 11:50 AM EDT
(1) Approx.
Equivalent QQQ Price
I received several e-mails
over the weekend in response to Friday’s charts as well as my brief comments on
bumps along the road that those who do this for a living encounter from time to
time. In response to the chart questions, the time interval adjustment was made
specifically for Friday, as I thought the 13- and 60-minute charts told the
significant story, and I plan on continuing to publish the three- and 13-minute
charts for the most part. Please keep in mind that I monitor many intervals at
this end and may from time to time back us up to view the larger picture. As
I’ve said before, one needs to make sure the forest isn’t burning down if you’re
chopping trees for a living.
On the topic of struggles, which seemed to generate as much interest as any
previous column, I appreciate all of the positive responses. Believe me, over
the years I’ve gone through phases where the trades literally rolled off my
fingers for weeks, periods where I seem to be treading water for a while, as
well as one particular stretch where despite clear signals and market reads, I
was two steps slow and seemed to be on the retail side of every trade.
Which leads me to providing a huge round of applause from this end for Mark
Douglas’ recent contributions to TM. Of all of the traders, authors and
inspirational leaders in this industry, Mark’s past work has done more for my
trading over the years than anything or anyone, particularly as it relates to
the psychological aspect of this business which I will always believe has a far
greater impact on trading success than technical analysis. His TM lessons have
been a very welcome addition from this perspective.
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.