This Is The Ticket To Staying On The Right Side Of The Trade
The major markets are
continuing their recent pace and themes
as we’ve discussed ad infinitum in recent columns as key 13-minute, 60-minute
and daily trends remain to the south as we head to press. A knee-jerk move off
the lower Bollinger Bands and brief price probe north of current 13-minute
downtrend support (for newer readers, I purposely use the term “support”
rather than “resistance” in a downtrend to remind all that a downtrend is a very
tradable trend with its own support) has thus far acted only as an interim
blip in the downtrend similar to last night’s Oakland blocked punt which
momentarily stirred some home amidst a clear trend and likely outcome.
Given the rising market fear as measured by the VIX.X and world events,
reward/risk ratios will likely begin to skew toward long reversal
opportunities. Yet as has been our column theme over the past few years,
respecting the current trend until broken remains the ticket to stay on the
right side of the trade. Getting a reversal on at least the 13-minute time frame
will be a small premium to pay to provide a decent trade support and stop
premise.
ES (S&P)Â Â Â Â
 Friday January 24,
2003Â 11:00 A.M. ETÂ Â Â Â Â Â NQ
(Nasdaq)
Good Trading!
Don Miller