Don’t Step In Front Of The Train…
At the risk of being overly
redundant, the Qs are — you guessed it —
once again testing their intraday lows and have broken below $30.00, while the
Nasdaq futures have lost key 1200 psychological life support. The semis have
been leading the carnage, down yet another 4% on the day. Absence of buyers at
lower levels continues to plague the bulls, and trading opportunities this
morning have frankly been on the thin side given early low liquidity and
mid-morning trader ambivalence. Having said that, the three-minute trend support
continues to provide a strong intraday guide and will keep you on the right side
of the intraday market.
Given the combination of poor pace, liquidity, and extreme price levels, I’m
advising a bit of intraday caution as prices can spike sharply in the context of
such a thin market, as was the case yesterday afternoon. Should the futures
stabilize back about 1200 (approx. $29.75 on the Qs) in the context of a
three-minute uptrend, premises for reversal opportunities may begin to surface,
but don’t step in front of the train while it’s still moving against you. Also
keep your eye on the VXN, which is spiking +2.60 as the column goes to press.
12:00 P.M. ET
Nasdaq Futures
Reminder
Please watch for Monday’s column where I’ll be discussing QQQ vs. Futures
trading.
Good Trading and Have a Great Weekend!