No Man’s Land
The Qs are in no-man’s land
this morning as the market digests its recent two-day explosion. I say no-man’s
land because as we opened this morning, the Qs were about mid-way between 15-MA
support and upper Bollinger Band resistance, which is equivalent to a flip of
the coin, and while range scalps are tradable in such a zone, I prefer a bit
more in terms of probability for longer-term positioning. As a result, letting
the market
make the next move would seem prudent, as one looks to consider pullback bounces
or exhaustion reversal entries — assuming one is not trading consolidation
breaks. At the risk of stating the obvious for some, the challenge in attempting
to trade range breaks is that one can get cut up capital-wise — and more
importantly, confidence-wise — searching for the right one until it occurs.
That basically leaves me in a “wait and see” mode favoring fades from
the current level with appropriate triggers and stops as always.
(1)
Approx. Equivalent QQQ Price
Keep in mind “waiting”
is very much “working” in this business, and for some requires more
effort and discipline vs. executing and managing trades.
Good trading!