Selling Strength
Selling strength continues to
be the QQQ rally cry with
(
INTC |
Quote |
Chart |
News |
PowerRating) and
(
CIEN |
Quote |
Chart |
News |
PowerRating) playing today’s role of Acme anvil salespeople for those attempting
to hold longs for anything more than a daytrade. The early trading range has
thus far been contained to a fairly narrow corridor as we hover around hourly
support. Compared to yesterday, which I felt was a day to press given the
plentiful afternoon pace and opportunities, I’ve found this morning to reflect
one requiring a bit of restraint as we wait for the market to digest yesterday’s
bounce and attempt to establish either a base or the next leg down. The Dow and
Nasdaq continue to show strong divergence and rotation, which doesn’t bode well
for the tech bulls, and holding yesterday’s lows amidst the latest news will be
paramount in turning around this barge.
2002 12:00 PM EDT
In light of the four-week
pullback, keep in mind that adjustments to your trade size may be warranted to
maintain the same amount of traded capital and risk. Also, adjusting your point
movement expectations is necessary as similar % moves will correlate to smaller
price movements. While I realize that is an absurdly obvious comment for some, I
still find that many traders fail to make such adjustments which can negatively
impact one’s bottom line.
Good Trading!