Looking For The Dramamine
The Qs are slightly off their
intraday lows as we approach midday due
largely to weaker than expected ISM and construction spending results which have
sent an already nervous market looking for the Dramamine. Yesterday, I mentioned
the relative weakness of some of the key underlying Q equities, including Microsoft
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MSFT |
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PowerRating), Oracle
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PowerRating) and Sun Micro
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PowerRating), which was worth
noting despite the early day pop, and such former bellwethers which comprise a
good portion of the Nasdaq 100 have played lead roles in today’s decline.
Disappearing bids on any weakness continue to plague the bulls and favor the
bears which has served to exacerbate the morning decline.
At this point, I’m eyeing the current 13-minute downtrend and 15-MA angle which,
along with the hourly chart, are combining to create a potential inverse cup and
handle as noted below. Keep in mind, however, that we continue to trade at
extreme levels (which yes, can become more extreme), so I’m favoring tight
trails on shorts and patience on the long side.
Wednesday May 1,
2002Â 12:00 P.M. ET
Good Trading!