Lid Still On Cookie Jar
The hourly lid remains on the SPY
and Q cookie jars on this FOMC day, as
recent attempts thus far on the lesser timeframes have yet to be sufficiently
strong to bust through the hourly ceiling on the ETFs and their respective
E-Minis. Technology has been a bit stronger than the broader market, with the
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having momentarily come up for air at the open and remaining p-p-p-positive
(still can’t believe I said that) as we go to press. Time will tell if it’s
merely a bob or something more.
With the array of Consumer Confidence, analyst games, and the typical pre-FOMC
rumors, keeping the trade on the lighter side may be the ticket going in the
afternoon trade. In the meantime, mind your 3/13/60 combinations which have led
to a few nice nuggets as the three has been a good leader once again today.
QQQ
Tuesday September 24, 2002 11:30 A.M. ET
SPY
Moving Avg Legend:
5MA
15MA 60-Min 15MA
See
School and
Video for Setups and Methodologies
Online E-Mini
Course Launch!
OK, you’ve asked and we’ve listened. Given the unprecedented success of the QQQ/SPY
course, strong similarities between ETF and futures trading (after all, Q and
SPY traders focus 100% on futures charts), and to respond to customer requests
amidst the largest current growing segment of the trading world, I’m very
pleased to announce that we’ve rolled out a comprehensive course 100% dedicated
to the E-Minis. The course includes everything from E-Mini basics for traders
new to the futures market to strategy techniques for advanced traders and those
very familiar with the intricacies of futures trading.
In addition to laying out a complete E-Mini trading foundation, the course
provides traders with a chance to practice and perfect futures trading
techniques to traders’ heart’s content without incurring an ounce of trading
capital by participating in
17 simulations powered by
TradingMarkets’ Real World Simulation Engine. Much like a flight simulator,
you’ll be a pilot making “on the fly” decisions and be provided with immediate
feedback as you navigate the market, along with a comprehensive walkthrough of
my thoughts as your “flight” ends. It’s frankly about
as close as we can come to cloning a thought-process, short of interfering with
nature.
Marketing aside, I created the simulator with the primary intent of providing a
low-cost, risk-free environment where traders could train and gain the necessary
experience and confidence without incurring loss of capital. To my knowledge,
such an opportunity simply doesn’t exist in the market — including
broker-provided “demo” modes that provide zero guidance” — and we’re trying to
change that.
As I’ve said before, I wish I would have had such an opportunity when I started
or even when I hit a few bumps along the road, which would have saved me
significant stress and capital over the years. Yet my personal views are of
course irrelevant, and I’ll continue to look to customer feedback as the true
guide of its effectiveness — which has once again been strong.
“Stranded on an Island?”
I’ve received a great deal of mail over the last week asking about the current
Island ECN issue. As many know, the Island “book” for ETFs, which had previously
been viewable by all showing its bids and asks, will for now not be available
given Island and SEC actions. While this makes trading a bit more challenging
for Island traders, you still have several options including routing orders
through other visible ECNs such as Redi, Arca, and Instinet, as well as
continuing to route via Island as the book remains in tact even though it’s not
viewable.
One area somewhat unclear is the impact the change will have on trader
participation and book liquidity. Yet I’ve personally routed several SPY orders
directly to Island since Monday, both in terms of adding and reducing book
liquidity, and have had no problem. As a result, while you may need to tweak
your order entry methods, I see zero difference in terms of trade strategy —
especially for traders trading 13-minute timeframes and above where precise
pennies should be irrelevant. Plus, the situation gives us another opportunity to
stretch and firm our flexibility muscles, which while perhaps causing a few
groans, should continue to strengthen a key skill and mindset if we’re to
survive an industry that continues to evolve daily.
Good Trading.