Pretty Decent Trading
A minimal futures gap on the
heels of better-than-expected jobs data and an irrelevant ECB rate cut
provided enough skepticism for traders to
look for hourly downtrend continuation triggers. And with traders having their
pick of one-minute (9:29 a.m. ET), three-minute Globex (also 9:29 a.m.),
three-minute non-Globex (9:45 a.m.), and 13-minute non-Globex (also 9:45 a.m.)
triggers off the hourly downtrend support, it’s been a pretty darn decent
trading morning with the futures moving down between 12 and 17 points, depending
on the trigger selected and amount of confirmation one required.
At the risk of preaching (“oh no, here he goes again”), if you’re getting caught
up in the premarket tube talk and aren’t paying attention to chart reality and
looking for triggers, then I suggest you donate your TV to a worthy cause —
perhaps to those traders who bought the Dec. 2 open who may be selling household
assets to raise capital. While I mean no disrespect to those struggling and who
are on the wrong side of these trades, such traders have two very clear options:
Change or continue to watch an eroding trading P&L.
Mornings like today can frankly make a trader’s week, and before I get any mail
on “well, that’s all hindsight baloney,” we’ve been at this column now for going
on two years and the educational materials have been in place for over a year
which include live trading
and an abundance of
simulations to try our best to drill the concepts home. Short of pushing
buttons for folks, there’s not much more one can do.
With the VIX climbing to the mid 34s as we approach midday and yet another
approach to the lower hourly Bollinger Band, shorts and reversal traders should
take heed as reward/risk may likely begin to shift to reversal setups over the
next few days.
ES (S&P)Â Â Â Â Â
Thursday December 5, 2002 11:30 A.M. ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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2002 Quote LLC
Good Trading!
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