The Power Of The Hour

  • October 2, 2002
  • Don Miller

The S&P and Nasdaq E-Minis are
off their early lows, yet currently contained by 13-minute resistance
as we approach midday. Thus far, both ES & NQ
continue to hold hourly uptrends (more on that below) established midday
yesterday, and the immediate intraday battle is between the 13 & 60. Trade
opportunities have been on the limited side thus far, as the market digests
yesterday’s gains amidst a fairly tight range, which is fine, as we take a
breather from the plethora of opportunities yesterday.

As the hourly charts for both ES and NQ are set up in potential bullish cup
formation with their respective 15MA supports now serving as potential handle
supports, it’s worth keeping an eye out for any long entries should we see
confirmation triggers on the lesser timeframes, with a stop on a move south of
hourly support. 

Aside from the current intraday 13 vs. 60 battle, there is also an interesting
longer-term conflict developing between the current hourly uptrend and daily,
weekly and monthly downtrend. If this barge of a market is to eventually turn
north longer term, it will take strength of such cup formations to ultimately
break through what has been glacial downtrends.

And speaking of that hourly chart — respect it, embrace it and use
it. Yesterday provided yet another great example as to why I’ve tried to
drill the concept in over the past 17 months as well as in the coursework and
simulations in terms of providing a necessary backdrop for trading the lesser
timeframes, or using it as a trigger when trading off daily and occasionally
weekly charts. Once we cleared hourly, there was longer-term potential to the
daily short support (long resistance), and both ES and NQ cooperated nicely
climbing right to it (43 points on ES; 36 on NQ), although certainly for it to
happen in a single day was a bit of a gift thanks in part to a number of
premature shorts on the way up that set up several of our favorite “oversold on
support” setups.

Along the way there were several E-Mini course triggers for exits and trend
continuation re-entries that should have had 3-minute traders capturing nice
increments as the 13- and 60-minute traders were in a trailing stop and
scale-out maintenance mode most of the afternoon.

ES (S&P)         
Tuesday October 2, 2002  11:15 A.M. ET           NQ
(Nasdaq)

Moving Avg Legend:
5MA
15MA 60-Min 15MA

See
School and

Video for Setups and Methodologies

Charts ©
2002 Quote LLC

From the
E-Mini
Mailbag

As one of the first E-Mini
subscribers on the list (from the first day), I saw immediately it was going to
be a valuable way to understand, and use all the systems you’re showing in the
course.  I’m not yet finished, I will take it one at a time, but I had to email
you just to say thanks.
A follower, J.F.

The simulator exercises have really filled a gap for me, primarily in the trade
management area. K.B.

I must tell you that your “oversold on price support” tactic is working again
and again today on a trend day like today, almost like magic.  Thank you so
much.  N.

Good Trading.


Don Miller

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