Ingredients For Chaos
Sorry for the delay folks, as
midday trading and market action became extremely hectic in
light of a plane hitting a Milan skyscraper which drove the Qs down a quick
$0.50 before recovering all of it. Combine the unfortunate news — which is
still being digested — with a midday release of the Philadelphia Fed data and
you have the ingredients for pure chaos until the dust settles. Earlier in the
day, downward guidance and downgrades in the semis have helped drive the Qs
south as the market continued to retrace a portion of the early week run.
Given the nature of today’s news and rather tight current trading range, I’m
currently on the sidelines pending a resumption of clearer trends and higher
probability opportunities.
1:15 P.M. ET
As I mentioned in yesterday’s
column, keeping an eye on the hourly uptrend and Tuesday’s Q support at
approximately $34.60 was key heading in the afternoon trade, and would have paid
off nicely for folks paying attention, as the Qs indeed rallied by $0.30 off the
low which occurred just north of $34.60 and was aided by a nice change in the
three-minute trend. Prediction? Of course not. Probability? You bet, and that’s
all one can ask for in this business. As I state in the QQQ
video and school
time and time again, effectively combining multiple time frames in every trade
one makes can provide a nice combination of premise, trigger and low-risk stop.
Good Trading!