Volatility Rising
Volatility has
been on the rise this morning, resulting
in a very decent early trading pace for those active futures traders who may
have been growing tired of the last few “dribble” days. The early setup of the
day was an inverse cup and handle on the S&Ps which was supported by a quadruple
backing of the 1, 3, 13, and 60 minute downtrend supports on the morning failure
to hold the early up move. If you had tested the early long waters by buying a
pullback on the early climb — which was certainly feasible as we were north of
the 3 & 13 (and probing the 60) — a stop and reverse on the failure was the
ticket to early profits.
Given the daily uptrend and lower Bollinger Band approach on the hourly, tight
stops on any remaining shorts are advised as we head into the afternoon
session. Position traders looking to ultimately position long on the daily
pullback, may want to consider waiting for the 13 to re-trigger long, to ensure
at least some momentum returns on the buy side to increase the probability of a
further tradable rally
ES (S&P)Â Â Â Â Â
Wednesday October 23, 2002Â 11:30 A.M. ETÂ Â Â Â Â Â Â NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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2002 Quote LLC
Good Trading!
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