First Nasdaq target hit, here’s the next one
Jea Yu has been involved with the
equities markets for over 10-years. He specializes with intraday trading in the
U.S. equities and futures markets. To receive a free 7 day trial to Jea Yu’s
Underground Trading Pit,
click here or call 1-888-484-8220 ext 1.
Nasdaq 100 e-minis
(noodles) tagged the my first target of 1703 on the nose (pointed
out in my last report) once that 1693 line in the sand resistance broke out.
Ironically, there wasn’t a lot of participation in the breakout from the tier 1
generals like
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PowerRating) as we tagged
the 1703 level. From that point on, the 8 and 13-minute noodles formed dual
shooting stars to selloff into the close.
From this point on, we have to make sure that the
noodles hold above 1691 on pullbacks or else we will fall right back into
consolidation. If we can successfully retest the 1703 then look for 1713 next
target to the upside which is the daily upper Bollinger bands.
For the last two weeks, the market has been
spending Friday through Wednesday basing very flat consolidations and breaking
out on Thursdays. Since Thursday is a holiday this week, we might look to Friday
barring any terrorist incidents for another weekly breakout attempt. In the
meantime, we are making sure that we PACE ourselves during the tight
consolidation periods by sticking mainly to the first hour and last hour for our
trades.
It is very important to remember that one has to
recognize his style as a trader and stick to periods where that style works
best. Scalpers need volume and swingers need wider time frame trends. There are
four parts to trend and its important that every trader realizes this. The most
‘meat’ to play is the breakout channel widening process as well as the peak and
channel tightening reversals. Consolidations are the first part of trend and
should be avoided. Yet, consolidations can happen 70% of the time.
Its best to take it slow this week and pace
yourself with the market. Good trading all!
Jea Yu
Jea Yu has been involved with the equities
markets for over 10 years. He
specializes with intraday trading in the U.S. equities and futures markets.
Jea also is co-founder and lead analyst at
www.Undergroundtrader.com, the
premier
online chatroom for active traders and voted Forbes Best of the Web for
active traders four years in a row. Undergroundtrader.com has catered to
over 7,000 traders wordwide since its 1999 inception. Mr. Yu has authored
best sellers “The Undergroundtrader.com Guide to Electronic Trading†and
“Secrets of the Undergroundtrader†both published by McGraw Hill and two
videos “Level 2 Warfare and Beating the Bear†from Traders Library. Mr. Yu
is a popular guest speaker at the Online Trading Expos and has been
interviewed and quoted in major publications such as The Wallstreet
Journal, Financial Times and USA Today as well as having several feature
articles published in Activetrader Magazine.