One Beauty Of A Setup
The Qs are slightly red as we
approach midday, yet have been
fluctuating wildly in very thin trading as the column goes to press in
light of a late morning building collapse in downtown New York. Prior to the
midday news, we were provided with one beauty of a long setup which continues to
rank as one of my top intraday plays in the context of three-minute-strength
price vs. momentum divergence followed by a trend-change trigger which led to a
$0.40 pop from the trigger. The setup was further aided by the release of home
sales data which caused the second bottom, forming the strength divergence
preceding the trigger. In other words, if one was focused and aware of the
larger picture, you should have seen it coming … not predictive mind you,
rather anticipative.
In addition to the news which has me encouraging midday cash positions, the Internet
has been extremely bumpy today, and I’m hearing that Alternet is having periodic
outages.
Yesterday afternoon’s weakness was largely attributed to strong selling in the
semis which quickly turned the morning uptrends into afternoon downtrends.
Staying on the side of the appropriate 15-MA support for your particular trading
time frame continues to provide intraday profit potential while keeping folks
out of trouble.
12:15 P.M. ET
Back to the morning
setup, I can’t say enough about the price vs. momentum divergence setup which I
discuss in much more detail in the QQQ
video and school
simulations. I encourage all to drill the pattern into your mind so you’ll be
better positioned to take advantage of the opportunities.
Good Trading!