Gaps And Traps
We’re back at it
this morning after a week to relax and refresh among friends.Â
The major markets having been pulling back thus far
this morning amidst daily and hourly uptrends, as high-probability gap and trap
triggers remain alive and well, as evidenced by both Friday’s action and this
morning’s fleecing. At the risk of stating the obvious, for goodness’ sake
please stay on the wholesale side of these gaps, waiting for your lesser
timeframe trigger(s) to pounce.
On Friday, we gapped down into hourly support and this morning we gapped into
upper Bollinger Bands on both the 13-minute and hourly charts, and if you were
looking to trade in the direction of the gap, please re-read the
course material,
re-run the simulations, or get the old 2×4 out (alternatively, a 2×2 will
suffice). While gaps can and do continue (see July’s and October’s climb
out of the oversold abyss– that’s why we wait for triggers, folks), both setups
could have provided your daily keep while injecting that critical start-of-day
confidence that often carries into the trading day and/or week.
Heading into the afternoon session, both the S&P and Nasdaq markets remain in an
hourly and daily uptrend, with potential chinks developing on the
13-minute. Whether or not we follow through on the midday 13-minute probes may
provide clues into the afternoon and early week trade.
ES (S&P)Â Â Â Â Â
Monday November 18, 2002Â 11:30 A.M. ETÂ Â Â Â Â Â Â NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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Charts ©
2002 Quote LLC
I’m in the process of getting caught
up on e-mails that accumulated during my absence, so I ask for patience in my
getting back to you if I haven’t yet responded. I’ll be speaking at MIT in
Cambridge MA on the E-Minis and ETFs this evening, and hope to get caught up on
the mail by midweek.
Good Trading!
Â