The Low-Risk Ticket
The Qs are down just under
$1.00 as we approach midday, due in part
to the release of weaker-than-expected leading economic indicators, along with a
bit of a hangover from weekend reminders that the potential for additional
terrorist attacks still loom large. Yet perhaps we should just chalk up the
action to rational profit-taking after a five-day run as traders take some money
off the table, along with the fact that the Qs remain in a weekly downtrend with
15MA resistance just north of $34.00. I’ve been biased toward the short side
most of the morning given the opening below Friday’s key 13-minute and hourly
uptrend supports (which turned into immediate short supports), which has yet
again been helpful in guiding the early trade.
At the risk of sounding like a broken record, trading on the side of the three-
and 13-minute supports continues to be the low-risk ticket to intraday
profits given recent market rhythms and should keep traders out of trouble. I’m
frankly not too interested in longs at this point until and unless we break the
13-minute downtrend.
Good Trading!