Lack Of Conviction
The Qs have yet again fallen
strongly from their opening “retail fleecing” highs, this
time faster than a snowstorm fumble can become an incomplete pass. Softness in
the large caps, including
(
MSFT |
Quote |
Chart |
News |
PowerRating) and
(
INTC |
Quote |
Chart |
News |
PowerRating) has been taking its toll
on the broader indices, and has pushed an oversold market into an even more
oversold condition as defined by hourly and daily stochastic readings. The early
failure of the three-minute 15-MA support provided a clue as to the lack of
buying conviction beyond the initial futures gap, and reversing to the north of
that level is a prerequisite for a turn in tide. Volume has been on the lighter
side on this post-holiday Tuesday and watching to see whether MSFT can get up
off the mat may provide a clue as to trend continuation or afternoon reversal.
Monday January 22,
2002 12:00 PM EDT
More recent feedback
from the mailbag:
“Don, just watched your QQQ
video … enjoyed it … it was excellent.” G.M.
“Your advice of just concentrating on good trades and not to think about
the number of trades was on the money. Three trades today, three real nice
scores. Also having a very good week. Thanks for everything. E.T.
Good Trading.