Pop And Fizzle

Plop, plop, fizz,
fizz…
or more precisely, pop and fizzle shortly after the
open, as the market quickly fell under its own weight and our bread-and-butter
three-minute trend abruptly began yet another descent. In fact, as of mid-day,
the three-minute has yet to get out of the way of its 15-MA shadow since the
5-MA crossed down at 9:45 a.m. EDT, providing a beautiful trailing stop for
those riding the Qs down as much as a full point upon the trigger.

Wednesday, August 15, 2001  12:05 PM EDT

(1)
Approx. Equivalent QQQ Price

Having said all
that, and as trend pullback entries grow in risk the further the trend becomes
extended, be on the alert for potential trend weakening signals, keeping in mind
a change in the three-minute weather is vital and that we’ll have several
resistance points on any climb.  While it goes without saying don’t try to
be a hero, I’ll say it anyway.

Good Trading.

Don Miller

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.