Volatility Implodes
Will wonders ever cease?
The Qs gapped north of its 60-minute 15-MA on open, and we’ve been holding a
13-minute uptrend all morning. While intraday trading becomes somewhat difficult
on such a gap, as much of the move has occurred prior to open (the high % fade
was also elusive unless you traded pre-market), scalps have been the post-open
play of the day with a few potential trend continuation entries and exhaustion
entries. The volatility indices have imploded, with the
(
VIX |
Quote |
Chart |
News |
PowerRating) down 6.48 to
41.79 as of mid-day, and the
(
VXN |
Quote |
Chart |
News |
PowerRating) down 4.10 to 73.63.
As we look to the
rest of the afternoon, current key levels for the NQs include the approaching
1200 psychological resistance level and 60-minute 15-MA support at 1161. We also
have the development of a potential cup on the 60-minute chart which will make a
hold of any retrace to support even more critical for trend continuation.
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 Oct. 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.