How To Stay On The Right Side Of The Chop

It’s been a scalper’s delight
this morning as the overnight gap above the 13-minute water mark

has provided a strong backdrop for scalp longs off
the 13 support or scalp shorts off the 60 resistance. As I’ve said over the
years and is the case any time we’re in a timing conflict, respecting each one
in terms of entry and exit premise until broken will keep you on the
right side of what some consider “chop,” and what astute scalpers call “rhythm.”

Longer term, the 13 vs. 60 conflict will have to resolve itself before defining
the next move, and I’ve been biased a bit more toward the 60 given Friday’s
damage and hourly channel break, in addition to the morning gap reflecting the
first pullback on the hourly since the break.

ES (S&P)


Tuesday June 10, 2003 10:40 AM ET
NQ
(Nasdaq)


Moving Avg Legend:

15MA
60-Min 15MA

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Good Trading!


Don Miller