The Good News And The Bad News…
Q traders awoke to good news
and bad news this morning, the good news
being the market finally provided the textbook retracement setup we’ve been
eyeing in the context of a sharp sell-off from yesterday afternoon’s inverse
hourly cup combined with a weak double top as measured by our faithful momentum
indicator. Unfortunately, the bad news is that most of the action, including the
support-break trigger, occurred in the Globex futures session while most of the
western world was still asleep thanks to Nokia’s
(
NOK |
Quote |
Chart |
News |
PowerRating) "not quite out of the woods yet" forecast.
So what’s a Q trader to do when we open $0.80 below Monday’s close? Aside from
looking for early exhaustion reversal triggers or downtrend pullbacks, not a
whole lot, and shorting the gap down is certainly the last thing I would ever
consider. Given the tight rangebound nature of the morning trade, time may very
well provide the next clues and sitting on the sidelines may not be a bad idea
until the fog lifts. As I mentioned yesterday, my bias continues to be on
trading on the side of the 50-MA, which again helped guide yesterday’s afternoon
trade, yet it appears many participants are simply waiting for a clear range
break at this time. Also, keep your eye on the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) which was a
laggard yesterday and is testing key 600 support as we approach midday.
Tuesday
March 12, 2002 12:00 P.M. ET
"Loaded
Trading Gun"
The QQQ Trading School
launch remains in full swing, and I’m highly pleased to be able to team with
TradingMarkets to bring never-before-seen trading simulation technology to you.
Using TM’s Real-World Trading Simulation Engine, you will essentially be
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way in a virtual sense by providing feedback to your selections as you make
them, along with providing an in-depth solution narration after each round is
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As I mentioned yesterday, for those of you who already own the QQQ
video, you can apply your video payment toward the cost of the QQQ Trading
School by calling (888) 484-8220, ext. 208 and asking for Michelle Pilch.
Good Trading!