Simply Incredible
In trying to find some words to describe
the early action, I seem to have settled on "simply incredible," which
doesn’t really do much justice. We’ve had some incredible volatility on
the Qs this morning, as the market once again seemed to fleece retail investors
at the open, which provided some nice reversal opportunities for the nimble.
Given the nature of the gap down, including pre-market chart studies was helpful
in locating low-risk reversal entries with clear stop premises in the form of a
three-minute cross or post-cross handle base.
And in the department of redundancy department (e-mail me if you don’t get it),
the continued strength of the 60-minute resistance is beginning to make the
great wall of China look like drywall.
Keep in mind today
is triple witching, which may make for an interesting afternoon. I’ll be
watching to see if we hold 13-minute support in the afternoon, which will be
mandatory for another assault on the 60-minute wall. Given the longer-term
oversold nature of the market, please make sure you have clear premises and
stops on shorts.
Good trading and have a great weekend!
P.S. I’m pleased to announce that I’ll
be hosting a two-day
QQQ trading learning forum immediately following TM2001 at the Venetian
Hotel and Resort on Oct. 7- 8, 2001. It seems like we’ve struck a pleasant
nerve with the Q column, and I look forward to sharing my thoughts and views in
a live forum highly conducive to learning and interaction, as well as simply
meeting many of you in person. So whether you trade the Qs or watermelon
seeds, consider extending your stay just a bit and we’ll combine some very
intensive trading discussions and some fun!
For
a more in-depth look at how Don trades the QQQs, click here.