Drifting
It admittedly feels a
bit strange writing this column with the Qs on the upside of the
13-minute 15-MA, yet the market has momentarily curtailed its longer-term
decline and is sitting ever so slightly to the north of its key 13-minute
intraday support level. Drifting is the theme of the moment as we retrace off
longer-term resistance levels, including the 60-minute wall, and as traders
position for tomorrow’s key FOMC meeting. Mid-day ECN spreads on the Qs are wide
at times, reflecting the slowing pace and liquidity.
Monday
August 20, 2001 11:50 AM EDT
(1)
Approx. Equivalent QQQ Price
I spent some time over the weekend
reviewing some longer-term charts (yes, even daytrading scalpers have long-term
assets and perspectives to consider), and the monthly NDX chart is certainly
worth watching as we begin to measure the stochastic strength, or lack thereof,
of this August swoon. As is the case with any "reversal watch," the
change in trends on lesser time periods can be a key positioning trigger, and we
remain in a downtrend on both the 60-minute and daily charts for the moment.
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.