Here’s The Low-Risk Ticket, For Now
Another day, another leg down on
the major indices as hourly trends remain down on both the Nasdaq and S&P,
and both markets followed through on closing
bearish inverse hourly cups in today’s early trade. Like yesterday, the morning
intraday trade was a bit of a challenge given the gap down, although both the
three- and 13 minute trends provided guidance for a few scalp opportunities both
with (using a 13-minute pullback) and against (using a three-minute cross
exiting into the 13) the 60-minute trend.
At the risk of sounding like a broken record, longs remain scalps only and
shorts continue to have a tailwind at their backs until the hourly winds
change. We know that oversold can become more oversold and that reversal longs,
while increasing in probability the further we drop, will have their own
triggers in due time. Should ample room develop between our two major intraday
trend supports — the 13 and the hourly — a reversal trade off a confirmed
break of the 13 might be a consideration, exiting into the 60. And as we go to
press, there’s about a 15 point ES gap between the two, so it’s possible, yet
the power of the hourly remains in control and short pullback trades remain the
low-risk ticket until the tides turn.
ES (S&P)Â Â Â Â Â
Tuesday February 25, 2003 11:30 AM ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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