Keeping Perspective
The Qs are up $2.60 as we
approach midday, or essentially its version of the Chambers’ “Home Run,”
as short covering following hourly
strength divergence at yesterday’s close has fueled one of the stronger rallies
this trader has certainly seen in some time. Market reaction to Cisco’s
(
CSCO |
Quote |
Chart |
News |
PowerRating) earnings release provided an immediate cup-and-handle on the hourly
chart, and the rest, as they say, is history. Frankly, I’ve been spending much
of the morning cautioning traders not to fight the trend and to keep the longer
time frames in perspective which is absolutely CRITICAL to avoid trying to
define the lesser intraday intervals as being “too high.”
A day like today continues to show why I feel it’s mandatory to trade with
multiple time frames, as even the daily chart continues to provide oversold
indicators in terms of momentum. I am less concerned about trading the run as I
am employing caution in such an extreme market.
Wednesday May 8,
2002Â 12:15 P.M. ET
Good Trading!