Post-FOMC Hangover
The Qs are continuing to suffer from a
"post-FOMC" hangover as all of the key intraday trends are down at
mid-day. As was the case yesterday afternoon, price swings have been greatly
exaggerated due to extremely thin bid and ask levels on both the equity and
futures markets, and focusing on trend supports and a moving average of price
(vs. price itself) can help keep folks out of trouble and on the right side of
the market. This morning provided an excellent example on why price crosses are
not necessarily indicative of trend changes, as the five-period MA never
made it through key resistance, as the early shorts were getting squeezed for
breakfast.
Wednesday December
12, 2001 12:20 PM EDT
(1)
Approx. Equivalent QQQ Price
Some more feedback
from the recent mailbag:
"Don — Got your
video and watched it this past weekend. I really related to many of your reasons
for trading the Qs. Volatility killed me so many times on stocks I was trading.
And I got frustrated watching so many stocks trying to catch the right setup.
Then I would be in a trade on another stock and miss the big moves on the others
I had been watching. I traded only the Qs yesterday using what I learned. Your
video has already paid for itself and then some." D.M.
Glad to see the early holiday shopping is
paying off … and the initials are a mere coincidence :-).
Good Trading!