Focus On The Reaction
Q traders got the expected
bounce off daily support on the overnight gap, which
has filled as we approach midday. The Nasdaq futures are testing critical 1500
support (approximately $37.15 on the Qs) as this column goes to press, while the
SOX.X tests the key 600 level after early strength. Volatility has picked up
after initial plunges in the VIX and VXN, with the VXN recovering 1.25 off its
early low. Despite the post-gap decline, the techs continue to lead the broader
market on this FOMC-eve, and my focus at this point is on the strength of
reaction off the daily support, which thus far has been rather suspect.
Monday March
18, 2002 12:30 P.M. ET
From the mailbag:
"Don, I would like to
thank you for offering your QQQ
Training School. From what I have experienced so far, it is excellent, and I
look forward to completing it soon. I have been trading for ten years and have
never focused on the Q’s. You have really opened my eyes to the benefits. I have
also been frustrated with the penny markets. It took away a major source of my
income. Already a lot of the information you have shared with me has redefined
my methodology. Thanks, and keep up the great work." M.A.
Good Trading!