Volatility On The Rise

• August 5, 2002
• Don Miller

The Qs and SPYs are maintaining their daily, hourly and 13-minute
downtrends as we near mid-day on this summer Monday,
with the
(
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PowerRating) again leading the techs
lower. Volatility is once again on the rise, with the QQV.X up almost 7%
on the day.

All major volatility indices are working their way
toward late-July highs. Trend pullback and continuation entries have
been the early intraday ticket with any early test-the-water longs given
Friday’s strong close and early price tease above supports being stopped
out upon the trend confirmations.

While our key downtrends remain intact, the low band stochastics,
combined with the increase in volatility, presents a premise for
tightening trailing stops on any short positions while being on the
alert for any reversal triggers on the three-minute chart.

QQQ         
Monday  August 5, 2002  12:15 P.M. ET           SPY

Moving Avg Legend:
5MA
15MA 60-Min 15MA

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Good
Trading!

Don Miller