Friday Came Too Soon

• July 26, 2002
• Dave Floyd

Wow, what a week, truly one for the record books.
Other than being mentally drained, I am actually disappointed that the weekend
is here. Trading has been too much fun and too lucrative to want to kick back
just yet. Perhaps the immense volatility will continue into next week. One thing
is for sure, and I mentioned it in yesterday’s
piece, take full advantage now, these pockets of extreme volatility
typically do not last long, and while there is no way of knowing when this will
subside, give 100% each day.

I am going to do something different today. Rather than flesh out my thoughts
on the current and previous trading day, I am simply going to provide you with
some potential setups that I see developing on the 15- and 60-minute charts.
With the extreme moves recently in the futures, many of these trades have paid
off well. Naturally, always be trading in the direction of the market, bucking
the trend is not only foolish, but counterproductive.

Always, and I mean always, use a protective trailing stop. At the rate that
this market is going, a profit can evaporate in no time.

I suspect that this morning’s release of Consumer Confidence (or lack
thereof) will throw a little more gas on the fire if it comes in far above or
below expectations. Naturally, most are expecting a bad numbers, so an upside
surprise would be the more favorable trading scenario.

Key Technical
Numbers (futures):

S&Ps	Nasdaq
886	961
871-73	952
857	939
845	924-28
834 (confluence)	910
823	888
811-14	868-73
793	839
768-71	820

As always, feel free to send me your comments and
questions. See you in TradersWire.

Have a great weekend.

Dave