The Button Remains Taped
The Qs remain under sustained
pressure on this triple witch morning, having
reached new 2002 lows as
the long-term buy/reverse button remains taped (see yesterday’s
column … a great Kevin Bacon scene in Apollo 13). Despite the price
attempts to break out of the 13-minute stranglehold, the trend remains clearly
down with additional protection for shorts on the price wiggles via the hourly
downtrend support. While longer-term extreme and/or reversal
"heads-up" indicators are in the neighborhood, including divergences,
extreme volatility indices, etc., the safest intraday reversal entry in my view
remains only upon a reversal in both the three- and 13-minute trends with a stop
upon a break. Shorts continue to have nice trail guides for trend trades which
would trigger similar to long consideration upon any reversal on your particular
time frame.
Add Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) to the list of
companies generating a temporary burst of euphoria in pre-market action, a la Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating) and Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating). Keeping
your eyes on the technicals should keep you out of the fleece line. For those
eyeing the next sharp cover rally, whether it be this afternoon, next week, or
next month, patience is encouraged until the charts provide the "all clear."
Friday June 21,
2002 12:20 P.M. ET
Lastly, today marks
the one-year anniversary of the QQQ column at TM. I hope and pray that the
thoughts have been useful during the past year, and have perhaps provided you
with a different way of viewing the market.
Good Trading and Have a Great Weekend!