Rolling Out The Big Charts
Chalk it up to a morning off —
which this trader will certainly take since we get so few in this business — as
we await FOMC shenanigans this afternoon. As such, I’ll keep today’s commentary
light and focus on some interesting longer-term charts for swing traders and to
put the last few weeks in perspective. I refer to the monthly chart on the left
as my “What Are We Doing Way Up Here” chart, which I tend to roll out
when folks ask me how the Qs could climb close to 60% off their lows. Yet we’re
currently testing strong resistance, which can be seen by the angle of the 15-MA
downtrend support. At the same time, we certainly have an interesting cup
developing on the weekly chart with a nice potential base handle setting up if
the Qs pull back sub-40. With respect to the daily chart, the angle of the long
trend support which has been in place since early October has begun to weaken a
bit, yet we’ll continue to respect it as temporary support (resistance on
shorts) as we watch the testing process.
Tuesday December
11, 2001Â 11:36 AM EDT
All in all, it looks
like an interesting holiday trading season is beginning to shape up.
Good Trading.