Intraday Trader’s Dream
Wow! Mix weekly 15-MA
resistance, overbought daily stochastics, a “what was the world
thinking” monster futures gap open on the heels of a 30%+ market climb and
you had all the ingredients for a gas tank sputtering on empty while climbing
Pike’s Peak. Throw in a Merrill
(
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PowerRating) upgrade and a jittery market and you
can add worn brakes to the Q auto. Volume and volatility have been an intraday
trader’s dream in the context of the hard Q move down at open, an incredible
bounce off its 60-min 15-MA, followed by a further move south which as of this
writing has the Qs approximately $2.35 down from its pre-market high. As I could
talk for hours on the numerous setups, I’ll try to let the chart speak for
itself
Wednesday October
17, 2001Â 12:00 PM EDT
(1) Approx.
Equivalent QQQ Price
The day is still
young, and I would expect an intraday bounce or two along the way, but don’t
lose sight of the potential significance of the early reversal. It also appears
we have more anthrax news being reported as I conclude this column, which will
add yet another layer of complexity.
Good trading!