Precision Is A Prerequisite
Like a boat on Cape Cod Bay, the
Qs have been drifting along north of their 13-minute support since the gap up
this morning and are thus far refusing to pay attention to weakening daily
stochastics which are beginning to creep into oversold territory on a relative
basis while maintaining daily price support. Yet the market continues to be
riddled with less-than-spectacular intraday pace complete with occasional air
pockets that makes precision a prerequisite for intraday profits. Fading moves
toward support and resistance has certainly been an option, although one always
needs to be watching for the ultimate break, and reducing lot sizes or dividing
standard lot sizes by two to compensate for the chop may help.
Tuesday December
4, 2001Â 12:20 PM EDT
(1)
Approx. Equivalent QQQ Price
I’ll be watching the
convergence of the 13-minute and hourly supports as the afternoon progresses and
volume picks up, and which side of the convergence we trade on may help provide
clues to the afternoon trade.
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Good trading!