If A Tree Falls…
Oscillations in the
context of a 13-minute downtrend are the early story of the day as
we’ve been chopping around at these reduced price levels this morning. Still,
there were two good opportunities to profit from a one-minute-MA cross to scalp
both sides of one of the oscillations as noted below. I’m likely done trading
for the day and will tread very lightly on what I expect will continue to be a
very low volume day.
July 5, 2001Â 10:55 AM EDT
We do appear to be a
bit toppy longer-term as evidenced by the VIX and other indicators discussed by
other TM contributors, which sets up an interesting paradox similar to “If
a tree falls in the forest and no one hears it, does it make a noise?” Only
in our case, “If a market is toppy and there are no traders to participate,
will it still sell off?”
Upcoming Lesson
Please keep your eyes peeled for an
upcoming lesson on reversals which will incorporate many of the aspects of my
own trading as well as paralleling recurring themes discussed in my early
columns.
For
a more in-depth look at how Don trades the QQQs, click here.