Putting Quarters In The Machine
The S&P E-Minis are in major chop
mode this morning while their Nasdaq
counterparts are showing some early strength, courtesy in part of strength in
the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating). Weakness in the financials and
(
GE |
Quote |
Chart |
News |
PowerRating) are helping keep an
early-13-minute downtrend intact on the S&Ps, and we’d likely be well south of
780 if not for the tech strength. To put the conflict in perspective, 80% of the
leading underlying Nasdaq stocks are green, while 80% of the leading broader
market companies are red, as we approach midday.
So long as we remain in chop mode, keeping the mouse in the drawer might be the
ticket until we break the low-of-day vs. 13-minute downtrend battle, unless you
want to simply put quarters in the pinball machine.
Yesterday’s trade provided another good long trade setup shortly after 1pm EDT
when both markets had triggered long on the 1, 3, 13 timeframes, accompanied by
a momentary price probe above what had been hourly short support. The upper
hourly Bollinger Band and lack of a 5MA cross provided a great visual for exit
guidance.
ES (S&P)Â Â Â Â Â Â
Wednesday October 9, 2002Â 11:30 A.M. ETÂ Â Â Â Â Â Â NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
See
School and
Video for Setups and Methodologies
Charts ©
2002 Quote LLC
“Reality TV”
One of the things that has long bugged me
in this industry is folks who offer investment or trading “advice” without ever
allowing you to watch them live. Ask them if you can watch them put their
trading approach in place and you’ll hear every excuse in the book, either
because they really don’t have faith in their methods or ability or because they
don’t want you to see the critical aspects of trading such as order entry, trade
psychology under pressure, and dealing with the unexpected that accompany a true
trading environment and which give them the true “edge” — if they really have
one. In fact, without the latter aspects, any trading method — including those
which I’ve shared here for 17 months — is suspect and analogous to
understanding war through a series of pristine newscasts from your sofa.
My mail over the past few years can attest to a continuing industry void of such
insights, and if I had a nickel for every time someone has asked me about order
routing, trading the open, and other issues which can only be addressed in a
real trading session, well as they say I’d have a pile of nickels. And while
we’ve tried to fill part of the void with the E-Mini simulator — and
successfully based on initial feedback –nothing beats live trading.
So in the interest of continuing to strengthen the educational experience and to
continue my own personal commitment and desire to put substance behind this
column and educational tools, I’m pleased that the new
E-Mini video includes a few hours of an unedited live trading session, with
particular emphasis on “unedited”. Setups, entries, profitable exits, stops,
scaling in and out, and even dealing with an unplanned but realistic glitch
(you’ll have to see the video to find out what it is — like that never happens
in your trading, right?) are demonstrated. Short of piling thousands of
interested observers into a trading room, it’s as close to watching over my
shoulder as anything we’ve done to date. And to respond to past video viewers’
suggestions, we’ve enlarged the trading charts so you won’t need binoculars to
view them.
As trading the futures market is indeed war in terms of strategy, I’m hopeful
that seeing trading as it really is — without the glamour and rose-colored
glasses — will help us all take one step closer to reality.
Good Trading!
Â