Opposing Forces At Play
While the swing and stock
traders are likely pulling their hair out these days, intraday
Q traders are enjoying some nice intraday volatility accompanied by clear setups
and triggers. Yesterday afternoon’s surges up and down were both clear setups on
the charts. (Rumors or no rumors…I didn’t learn of the India/Pakistan rumor
until mid-climb and the rumored Greenspan effect on the subsequent retracement
until after close…great after-the-fact stuff, but don’t let it influence your
trading.) The afternoon price vs. momentum divergence followed by a trend
change on the three-minute chart as noted below was a pure classic and reflects
one of the core setups defined in the QQQ
video and School.
With respect to today’s trade, we have opposing forces at play on the macro and
micro charts with the hourly trend at a critical decision point and getting most
of my early focus, especially in light of the longer-term oversold indicators as
evidenced in part by TM’s timing signals. Much of the early action has, in my
view, been reflective of a market trying to find some footing, although the
early bounce off the double 13- and 60-minute support aided in part by the ISM
Services data was a very tradable long. Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) is the sole top-tier underlying Q equity in the green as we approach
midday.
Wednesday June 5,
2002 11:30 A.M. ET
Good Trading!