Mixing It Up
I’m going to mix
things up a bit and enlarge the 60-minute chart this morning as we
chop around on the lesser time frames, to try to put the market in clearer
perspective. As the Qs have provided a few recent gems in the context of
13-minute oscillations, the current upper end of that range remains clearly
marked by 60-minute resistance that has been in place for almost four trading
days now. And for each of the last several days, there have been two clear
intraday trading strategies, either shorting the continuing moves into
resistance where one will ultimately be stopped out, or trading the bungee moves
on the lesser time frames recognizing where clear resistance lies until proven
otherwise.
Having said that, we also need to be aware of the
decreasing slope of the 60-minute 15-MA and the narrowing of the gap between the
market price and resistance as we begin to consolidate and as we wait for the
current NQ range of 1340-1370 range to break. Any break to the upside would put
us north of 60-minute support on a price basis, at which time all eyes would
turn to testing and retesting before we get too excited about a longer-term
bounce. In the meantime, please continue to respect the upper ends of the
ranges.
(1)
Approx. Equivalent QQQ Price
By the way, you may
have noticed one nice scalp opportunity for the nimble who studied the weekend
lesson, as we once again had a short-term oversold situation on one-minute
support which led to a quick pop:
Good trading!
P.S. I’m pleased to announce that I’ll
be hosting a two-day
QQQ trading learning forum immediately following TM2001 at the Venetian
Hotel and Resort on October 7- 8, 2001. It seems like we’ve struck a pleasant
nerve with the Q column, and I look forward to sharing my thoughts and views in
a live forum highly conducive to learning and interaction, as well as simply
meeting many of you in person. So whether you trade the Qs or watermelon
seeds, consider extending your stay just a bit and we’ll combine some very
intensive trading discussions and some fun!
For
a more in-depth look at how Don trades the QQQs, click here.