This Is Why We Simply Have To Work Harder Intraday
We have some light market
divergence this morning as the weakness in the Nasdaq has thus far helped cap
the stronger S&P. Both markets remain in
technical 13-minute downtrends which began yesterday afternoon, although the
stronger S&P has been showing some strength price/momentum divergence on the
lows. The early trade in both markets has been on the lighter side, in terms of
both pace and volume.
As was the case yesterday, keeping an eye open for any 13-minute turns to the
north may provide clues into potential turns. Yesterday’s 13:40 ES post-cross
pullback was as textbook as it gets when the three, 13, and 60 all aligned
themselves to the north and provided a nice 5 point pop. Despite the eventual
turn to the south, which would have triggered trailing stops on profitable
trades, recent market rhythms continue to encourage picking up the dimes and
quarters while letting the market decide when it’s time for the folding kind to
show up.
I thought
Gary Kaltbaum had an excellent piece last night, and will add myself to the
camp of frustration in these overnight moves. Last night was yet another example
of a textbook reversal trade which triggered overnight rather than during the
normal US trading hours. I think that’s now about seven times over the last two
weeks since the war began. And since I choose to sleep at some point during the
night and have no plans to move to Europe, I suspect we’ll simply have to work a
bit harder intraday to find those high-probability, low-risk entries. And they
are there as yesterday once again proved.
ES (S&P)Â Â Â Â Â
Friday April 4, 2003 11:30 AM ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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