Expect Great Price Action

• October 26, 2001
• Dave Floyd

Wow. That is
the only word I can think of to describe yesterday’s price action. 
Believe what you want about the economy (which is probably true), but
yesterday’s rally offered great opportunities to those who simply approached it
for what it was, a great opportunity to buy pull-backs all afternoon with great
follow through.

Most, if not all of the pull-back
rallies were initiated off of KTNs.  Take
a look at the 5-minute chart below, you will see all the areas which offered
entries.  I never added 1098 to the KTN list in yesterday’s column, simply
because I did not think the market would trade up to that level. Boy, was I
wrong.

All in all a very good trading day, I
trust everyone was able to capitalize.  I suspect the market will offer
great trading again today.  Not only are the indices trading around
important technical levels, but at 10 a.m. ET we have the release of Consumer
Confidence and New Home Sales. 
These numbers are sure to get things going.

Key
Technical Numbers

I will be in TradersWire
periodically sharing my observations, I expect there will be some great price
action.  As always, feel free to send me your comments or questions.

Dave