Resolution Will Provide The Clues
Continued carryover
profit-taking from yesterday afternoon has been the theme of the
early morning, as for the first time in eight trading days, the QQQ is trading
below its critical 60-minute support level which may now become resistance
(support for shorts) until penetrated to the upside. Resolution of the current
key NQ 1500 – 1520 range will likely provide clues as to the next move, keeping
in mind the Qs are now trading in an hourly downtrend, the support for which was
rock solid on the long side during the recent climb.
Friday November 9,
2001Â 12:10 PM EDT
(1)
Approx. Equivalent QQQ Price
In Wednesday’s
column, I mentioned that I was interested in three key elements as a
precursor to a significant tradable reversal: (1) Weakening stochastics on
further market climbs, (2) a break of major 13- and 60-minute 15-MA trend
supports, and (3) stronger volume on down moves. We’ll call Thursday afternoon’s
move tic-tac-toe as it nicely provided us with all three ingredients.
Thursday November
8, 2001
Lastly, the QQQ
course which is now available via video seems to have struck a pleasant
nerve with viewers. Among the several e-mails I received this week
included:
“Really enjoyed your
Qs course. Excellent instruction. Your material is simplistic, but really
structured … not many traders can say that. Many thanks.” J.N.
“Very professional and well done.” B.G.
“I appreciate your candor, as it does help to know how others faced their ‘demons.'”Â
S.N.
Like giving birth (Note to self: Don’t share today’s column with spouse for
fear of the “What the heck do you know about giving birth?”
discussion), the end result seems well worth the production effort.
Good trading and have a
pleasant and safe weekend!