In ‘Trust Until Broken’ Mode
The Qs and SPYs — along with
their respective E-Minis — are approaching their respective 13-minute downtrend
supports as we approach midday, as a
mid-morning 3-minute turn in tide had moved the indices off their opening
abyss. As a result, keeping an eye out for potential 13-minute downtrend
continuation triggers may prove worthwhile heading into the afternoon. Both the
13-minute and hourly charts remain in a “trust until broken” mode, and should
continue to effectively guide intraday trade pullback entries and stops. As
volatility continues to spike (VIX.X over 46 as we go to press), be sure to
tighten trails on short positions.
It was nice to see our longer-term trade autopilots in full force over the last
few days as the hourly chart provided classic reversal entries and profitable
exits amidst the daily trend extreme and pullback. For example, with the SPYs
triggering long on the hourly at approximately 83.20 and trails lasting until
84.80, there were nice low-risk opportunities for a trade contra to the daily as
ETF and
E-Mini school students know.
QQQÂ Â Â Â Â Monday
September 30, 2002Â 11:30 A.M. ETÂ Â Â Â Â Â Â Â
 SPY
Moving Avg Legend:
5MA
15MA 60-Min 15MA
See
School and
Video for Setups and Methodologies
Initial response to
the E-Mini
School has been nothing short of amazing, and I’m doing my best to keep on
top of emails. As today is the last day to save $100, if you’ve ever considered
trading the E-Minis — which reflects the largest growing trader segment — you
may want to consider an early Christmas present. We’ve got some other goodies
planned, and will be updating you shortly.
Lastly, if you missed
Larry Connors’ weekend piece, it’s a classic (of course most are) and I also
never cease to be amazed by the prevailing industry concept of “those who don’t
have a clue, knock those that do.”
Good Trading.
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