Sanity Check
Volatility is on
the wane this morning, which actually
provides a decent breather and sanity check after the Q’s magical mystery tour
over the past week. My early bias heading into the day was been an
expectation of tight ranges with a slight bias to the upside, as long as we held
the gap and 13-minute support, and the day thus far is playing out as expected.Â
Goldman’s semi equipment upgrade this morning has provided a momentary
tourniquet to yesterday’s bloodbath as the techs are leading the broader market,
and time will tell if we can resume an hourly uptrend as we test a late-morning
price probe.
Adding the SPYs
As the Qs have dropped to the low 20s,
you may have noticed a distinct change in trade rhythm and pace, as well as to
your required share size to trade the same amount of capital you did at higher
prices. For those who trade with brokers whose commissions are sensitive to
share sizes, the reduction in Q price from the 40s to the 20s over the last year
may also be impacting your bottom line. For this reason, along with a
corresponding decrease in the S&P SPYs price to the double digits, many
intraday ETF traders are adjusting their focus to include more SPY trading.
As a result, and to respond to increasing industry demand to apply our proven
Q video and school
methods to other vehicles (they work for any liquid market folks), I’ll be
adding the SPYs to my narration beginning on Monday. For our Q faithful, rest
assured we won’t abandon the Q focus. I still trade and will focus on the Qs as
we do more with the SPYs, and the focus expansion should benefit all. The
methods, including order entry, are identical for both, with main difference
being slightly different rhythms, and I’ll touch more on that as we move
forward. As an early tease, here’s today charts for the SPYs.
26, 2002Â 11:50 A.M. ET
Good Trading and
Have a Great Weekend!
Don Miller