Like A Movie
Perhaps we should title this
morning, “Qs, Lies & Videotapes” as
the morning trade has been influenced by more plots than the movie. The Qs are
down over $0.60 as we approach midday, yet $0.40 off their morning lows (more if
you include pre-opening trades) thanks due a double whammy of Iraq’s “you
can’t have any of our oil” threat and IBM’s
(
IBM |
Quote |
Chart |
News |
PowerRating) “we’re going to
be a tad light after all” after apparently double-checking the ledger over
the weekend, both of which occurred before most traders were at their desks to
open the week.
In light of the longer-term oversold levels prior to the drop, the early bounce
comes as little surprise as eyes now turn to how much gas (pun intended) is left
in the intraday tank. Yet perhaps more interesting than the intraday trade, the
Qs along with their non-tech counterparts will now have a chance to prove what
they can or can’t do longer term after taking two consecutive punches when they
were already near the mat.
If the news were strictly related to world
events, I’d be anticipating and playing the long side more heavily, yet I’ve
kept much of the early trade to short scalps supported by the 13-minute
downtrend until that tide changes and am in watch mode going into the afternoon.
Longer-term, and as is the case with any overextended trend (which yes, can
easily become more overextended) and in light of various TM timing indicators,
I’ll be looking for reversal opportunities when and if we begin to reverse on at
least the 13-minute chart.
12:15 P.M. ET
Market and Body
Rhythms
Thanks for all of the get-well e-mail and
response to Friday’s column. Here are a few excerpts.
“Although I felt a bit better by knowing that the pros like you also
made the same mistake, I absolutely hate what I did today. Right now, right
here, I am making a pledge to myself: I will not trade when I am sick or when my
mind is preoccupied with other matters. Thanks again for sharing. Have a restful
weekend!” T.V.
“Glad to hear you’re feeling better. Just a quick member’s comment on your article
posted today (Friday) — it was a good one! So important for your readers to
know and appreciate the temptations, seductions, deceptions and traps out there
in the marketplace. However, benefits of professional trading far outweigh the
disadvantages. I appreciate your commentaries. Keep up the strong work!”Â
O.
Good Trading!