Is The Cat Dead?
As we approach mid-day, the Qs are
quickly retracing toward 60-minute 15-MA support, reflecting a move not terribly
unexpected given the extent of yesterday’s bounce. Time will tell if the
cat is dead or not, as will a successful test of hourly support. Shorts
who previously entered on the three- or 13-minute breakdown at 11:45 ET should
recognize the 60-minute support (resistance on the short trade) and consider
paring and using trailing stops to manage from here.
Tuesday September
25, 2001 12:15 PM EDT
Changes in the
current three or 13-minute downtrends are prerequisites for lower-risk
re-entries
into a longer-term trend continuation to the upside, which will protect against
lack of any bounce.
Good Trading!
P.S. I’m pleased to announce that I’ll
be hosting a two-day
QQQ trading learning forum immediately following TM2001 at the Venetian
Hotel and Resort on Oct. 7- 8, 2001. It seems like we’ve struck a pleasant
nerve with the Q column, and I look forward to sharing my thoughts and views in
a live forum highly conducive to learning and interaction, as well as simply
meeting many of you in person. So whether you trade the Qs or watermelon
seeds, consider extending your stay just a bit and we’ll combine some very
intensive trading discussions and some fun!
For
a more in-depth look at how Don trades the QQQs, click here.