This Isn’t A Carbon Copy
Before I get started,
no, this isn’t a carbon copy of yesterday’s article, although it’s admittedly a
bit of a struggle to come up with something new and exciting this morning as
similar themes are again evident. Then again, there’s something to be said for
market predictability as we’re once again in an early NQ range, having moved up
from yesterday’s early 1360-1400 to today’s 1400-1430. The market continues to
shrug off weaker-than-expected economic news, this time with respect to today’s
unemployment data, and we continue to hold a 60-minute uptrend which has to be
respected. All in all, market bias seems to remain to the upside as selling
appears limited to “air pocket” like profit-taking or premature
shorting, only to be followed by short covering and new longs testing the waters
at these levels.
Friday November 2,
2001Â 11:50 PM EDT
(1)
Approx. Equivalent QQQ Price
Volume and pace are,
at times, such that chasing any momentum will lead to quick losses and
frustration, and suggestions in this environment include making sure any entries
are as close to support premises (i.e., 15-MAs if trading trends, or bollinger
bands if fading range oscillations) as possible and consider reducing your
normal size and paring in to provide additional room for error in an environment
where the margin for error is extremely small. The danger, of course, in getting
to used to range-bound trading is being on the wrong side of the breakout which
will eventually occur at some point. Buying interest and volume may pick up
should NQs break above 1430.
Then again, those in the Northeast can always enjoy today’s 70 degree weather
and head for the links and get a head start on the weekend.
Good trading and have a great weekend!