Setup Day
The Qs are hovering around
unchanged as we approach midday, and you
guessed it, we’re once again testing intraday lows. (Do we detect a trend here?)
The early Q climb was fueled in part by general market momentum resulting in
part from the SEC’s clarification of its review of
(
IBM |
Quote |
Chart |
News |
PowerRating), which caused a
futures spike in all markets, and partly due to a simple oversold bounce. After
all, at the Qs recent run rate, they would be priced at zero by mid-summer,
which isn’t going to happen. Trade liquidity has been on the thin side thus far,
with a $33.00 – 33.50 range in place which has provided for nice one- and
three-minute oscillations.
I frankly view today’s trade as more of a setup day for next week in terms of
gauging the potential of a climb out of the current abyss or further weakness,
and work remains this afternoon on the 60-minute chart for the Qs to pull
themselves out of an hourly downtrend which has been in place for three and half
days. As longer-term indicators continue to reflect oversold levels, tightening
stops on any short positions would appear to be the prudent course of action
before the profits erode.
Friday April 12,
2002 11:45 A.M. ET
The QQQ
School mailbag continues to overflow at this end, yet you should hear back
from me within two days.
"Just bought your course and love the simplicity and clarity. My first test
out was three winning trades today, and I feel confident it was not just
luck." D.R.
Good Trading and Have a Great Weekend!