Waiting For The Real Open
Tick, tick, tick. Still waiting for the real market open,
although we had a nice $0.35 QQQ move off the strengthening
stochastic at 10:15 AM EDT, with the one-minute 15 MA providing
a nice guide on the way up as discussed live on TradersWire
interactive. Goran and David did a good job of setting
the FOMC stage for you, so I won’t belabor the point except to
say be smart, be careful, and consider rebooting your system and
minimizing any unnecessary applications as we approach 2:00 P.M.
EDT. I have absolutely no clue as to what will happen
(never have, never will) and like David, will be flat going
into the announcement and only act immediately if the totally
unexpected happens.
June 27, 2001 10:55 AM EDT
Plots
& Subplots
One of the questions I’ve
received lately is whether or not all of the intraday trends I’m
monitoring have to be trending in the same direction for me to
consider an entry. Answer? No. (Quick
aside: As one who is often a market contrarian trading on the
opposite side of intraday mob emotion at their extremes, you’ll
find I’m pretty good at saying "no"…which probably
explains why I enjoy reading Goran so much.) Anyway,
we know that there are always multiple trends going on at any one
time, with smaller time frame subsets of larger time frames.
So relying heavily on the three and 13-minute time frames for
trend guidance, I’ll frequently trade one-minute mini-trends
that are simply pullbacks of a larger time frame if I’m not
currently trading with the trend. Or if I’m particularly
focused during a given day, I’ll exit the trend and reverse into
the mini-trend. The key of course is to recognize the
forest for the trees and manage the exit upon approaches to the
larger trend support (resistance on the mini-trend). Last
Wednesday’s charts provide a good example:
June 20, 2001 NQ01U
Microsurgery?
Most definitely. Fighting the larger-term trend? You
bet. Yet last I checked, the objective of the game is
profits via anticipated price differential. After all, the
subplot is often the best part of the movie.