Waiting For The Fog To Lift
Wow. After printing in last
night’s after hours session at $29.75 (see
NQ 1215) on panic reaction to the initial Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) sleight of hand,
some folks woke to some serious
bagholding as the Qs traded down this morning to approximately $2.00 off the panic
highs move. (Don’t adjust your monitors, the charts below are correct.) If Kevin
Haggerty is first
in line to want to check the futures manipu … er, I mean movement, then
I’m right behind him. At one point on the late-day pop, I swear I saw about a 20
point spread on the way up. For newer readers, why do I care about the futures?
Because as QQQ School
students know, the Qs move 1:1 with NQ which reflects the "pure"
market vs. that of a tracking fund.
So where does that leave us this morning? Early action has been fast and furious
within a fairly tight range as traders sort out the overnight action and the
sidelines hasn’t been a bad place to be this morning until the fog lifts. As we
look to longer term, we indeed did get the daily retracement I discussed in yesterday’s
column, albeit in a manner which unfortunately prevented a high-percentage
short entry on the 13-minute break and eyes now shift to measuring the momentum
behind the drop. Keep in mind, however, that given the current daily chart and
rhythm of the recent climb, the Qs can trade down far below Friday’s low and
still show price/momentum strength divergence, which reinforces the fact that
momentum indicators such as stochastics mean nothing unless combined with the
other two legs of the stool: trend and range.
11:15 A.M. ET
Good Trading!