Playing Tennis In A Phone Booth
If you enjoy playing tennis in a phone
booth and were on your trading-range game, today’s early action was for you.Â
Otherwise, it’s been a matter of waiting for the early tight 1670-1690 NQ
trading range (approx. 41.25-41.85 on the Qs) to resolve itself one way or the
other to align oneself with a trend. We continue to struggle with the
upper end of the range and key 1700 NQ level heading into mid-day as the
market seems to be digesting its mini-run of recent days. As of 12:00 p.m.
EDT, we’re currently testing 13-minute 15-MA support, which I’ll continue to watch
as the day progresses, as well as stochastic strength or lack thereof if we
climb further. Yet all in all, I plan to keep it light from this point
forward on this July Friday.
2001Â 11:50 AM EDT
Replay
I again made reference to yet another potential Q cup and handle in TW yesterday
afternoon, this time on the 60-minute chart with a potential handle base once
again forming at none other than the 60-minute 15-MA. The key confirmation
had to be resolution of the immediate 13-minute MA lid which I mentioned in
yesterday’s column, which after substantial testing and one key hold of the
three-minute 15-MA. finally broke to the upside. In the words of Warner
Wolf, let’s go to the videotape:
While we again need
to avoid the 20/20 hindsight trap when reviewing charts after-the-fact, there
were certainly clues as to potential
(which is all we can ask for in this business of perpetual uncertainty) with a
few nice premise-based stop triggers such as a break of the three-minute 15-MA at
13:15 or a breakdown of the strengthening 13-minute stochastics. Both of
these stop triggers were discussed in my recent lesson.
Have a Great Weekend.
For
a more in-depth look at how Don trades the QQQs, click here.