Visions Of Years Past
It’s admittedly been a
while since we had a bit of a bullish-open play, and this morning
brought back visions of years past — if even for just an hour — as the Nasdaq
gapped up slightly, retraced toward Monday’s low, and then made an impressive
move to the upper end of its 13-minute range, which has thus far held as today’s
highs. Of course, "impressive" is relative after the carnage that
we’ve seen, but after all, we have to eat off the menu that is served and even a
burger can look good after a lengthy diet.
Pace and liquidity have been very slow and illusive since the early highs, which
is to be expected given the start of the Jewish holiday season, and there’s been
little sustainable buying interest beyond the initial pop. A turn in the current
three-minute downtrend is a prerequisite for any interest in the long side.
Tuesday
September 17, 2001 12:05 PM EDT
(1)
Approx. Equivalent QQQ Price
Week’s Lesson??
Please note that we’ve now
transitioned to the December E-Mini futures (NQ01Z) as the effective proxy for
trading the Qs, as the rollover from September contracts is upon us. As I’ve
mentioned in the past, the QQQ chart itself is a poor guide for daytrading the
Qs as the result of out-of-market ECN prints that are totally irrelevant and
distracting for trading purposes. It is less of an issue for longer-term
traders.
Good Trading!
P.S. I’m pleased to announce that I’ll
be hosting a two-day
QQQ trading learning forum immediately following TM2001 at the Venetian
Hotel and Resort on October 7- 8, 2001. It seems like we’ve struck a pleasant
nerve with the Q column, and I look forward to sharing my thoughts and views in
a live forum highly conducive to learning and interaction, as well as simply
meeting many of you in person. So whether you trade the Qs or watermelon
seeds, consider extending your stay just a bit and we’ll combine some very
intensive trading discussions and some fun!
For
a more in-depth look at how Don trades the QQQs, click here.