Intraday Capital Preservation
A very tight post-gap
trading range is the early theme of the day which continues to
provide exit opportunities for swing longs while many of the intraday
traders chalk up the early action to a morning off. Given the early range and
pace, I’m currently subscribing to the school of intraday capital preservation
until we get better volume and a break of the current 1570 – 1580 NQ range with
decent volume. Fortunately, the recent QQQ climb to near 40 has provided for
nice range scalp trades with little market movement which provides some
opportunity — albeit limited — as we await better pace.
Tuesday November
13, 2001Â 12:15 PM EDT
I’ll be once again
watching the daily stochastics on this and any further climbs to manage trades
and to begin to search for reversal opportunities as we know that markets don’t
trend forever and tradable corrections will appear. At the risk of sounding like
a broken record, the emerging daily stochastic divergence will mean little
unless, and until, trend changes appear
Good Trading!
P.S. I continue to be
humbled by the early responses to the QQQ
video. If I haven’t responded to your e-mail yet, rest assured I greatly
appreciate the feedback, am glad the content has been helpful, and will respond
personally shortly.