Staying Strong
The Qs have continued Friday’s
strength move and remain in a 13-minute
uptrend which is proving to be as strong on the way up as it had been on the way
down prior to Friday morning’s turn, and thus demands continued respect until
violated. The Qs have also broken daily resistance on a price basis with a
potential cup emerging with the rim around $37.00 and a potential handle base at
support of $35.30 in a follow-through to Thursday’s strength divergence. At the
risk of stating the obvious, the Qs appear overbought on a shorter time frame
basis, yet respecting the current two-day 13-minute stranglehold until violated
remains the low-risk trade.
Monday March 4,
2002 12:00pm ET
I received a great
deal of mail over the weekend asking about my thoughts on Friday’s strong
uptrend day, which has of course continued thus far this morning. To summarize
my common response, such action just continues to strengthen my belief in the
need to continually balance multiple time frames to maintain perspective. Too
often, traders get lost in the intraday picture and get beat up anticipating
oscillations which may not occur if the larger time frame is providing fuel for
the fire, which has been the case over the last few days. Earlier in my career,
I would have undoubtedly been among the kindling for the short squeezes, yet
experience can be a great teacher and indeed taught me to ALWAYS maintain
multiple time perspectives, which is why my QQQ
video drills this concept in time and time again and why you’ll never see a
column posted with less than three time frames.
As I told folks over the weekend, if you simply can’t convince yourself the
market is making sense (a topic for another time), the better alternative is to
simply sit back and watch rather than fight the move and join the
kindling as intraday oscillations will indeed reappear when the trending is
complete.
Good Trading!