Keeping It Short And Sweet
We’ll keep today’s
narrative short and sweet as much of the trading world is awaiting
this afternoon’s FOMC decision. The Qs remain in an hourly uptrend having once
again bounced off support shortly after the open, which essentially leaves us
looking for clues as to the likelihood that NQ 1500 will act as continued
resistance and a launching pad for shorts, or whether the bulls are strong
enough to penetrate the recent ceiling. As trading with the 60-minute trend
continues to provide the best opportunities, we can continue to look to a hold
or break of its support to provide us with a short-term answer.
Tuesday November
6, 2001Â 11:50 AM EDT
(1)
Approx. Equivalent QQQ Price
Keep in mind the
initial reaction to the FOMC decision may not reflect the true short- or
longer-term trend. As there doesn’t appear to be a clear consensus on a 50- vs.
25-basis-point cut, my expectation would be for an immediate knee-jerk drop if
we only get 25, at which point longer-term trend detection will become
paramount.
Good trading!