Respect Until Broken
The SPYs and Qs are treading
water on this Triple Witching Friday morning,
with the SPYs retaining its 13-minute downtrend support (resistance on longs) on
every attempt of strength on the three-minute. As such, “respect until
broken” continues to be our theme, yet should* the SPYs cross up on
the 13 and establish a base — given that daily and hourly stochastics are
currently under my desk and the
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) is giving me a neck strain looking
up — there may be a decent long trade opportunity with a stop if we turn back
south. The Qs are a bit more rangebound this morning, oscillating around the
13-minute fence, so thus far the SPYs have provided the better patterns and pace.
Avg Legend:Â Â Â 5MAÂ
 15MA  60-Min
15MA See School
and Video
for Setups and Methodologies
I received a good e-mail
from a reader addressing my “potential monthly keep” comment in yesterday’s
column, asking if I really meant it. Indeed I did, as this business — like
many — often adheres to the 80/20 rule where the majority of trading profits
can come from a handful of trades. As I’ve discussed in columns and lessons over
the past 16 months, as well as in the school
in great detail, the concept of probability of course rules, yet recent market
patterns have continued to be in lock step with school rhythms, and as I’ve said
before, “when they’re handing out doughnuts, grab one.”
Please note: My column will return on
Tuesday as I’ll be out of the trading office on Monday.
Good Trading and Have a Great Weekend.
* “Should” synonyms in this case include “if, only if, unless, no
cross no trade, etc.”