We Knew It Was Coming
We knew it was coming, we just
didn’t know when … until today that is. Combine
yesterday’s tech strength divergence vs. the S&P and Dow, strong
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hourly price vs. momentum divergence, TM’s timing indicators lighting up like
Celtic green, and the mandatory trigger — which had been lacking until
this morning — in the context of a 13-minute trend change and the end result is
a $1.00 pop on the Qs ($1.20 from pre-market if you include the activity driven by
a highly illiquid futures pop down as the result of a lame Arafat rumor which
caught some shorts) that can provide many with their weekly, if not monthly
keep.
If you’ve been reading recent QQQ columns, along with Larry Connor’s great
commentary, or working with the QQQ
simulations, you were prepared and ready to pull the trigger. Simply put,
patience always pays, and I truly hope shorts kept tight stops as I’ve been
preaching. At the risk of beating a dead horse … or perhaps bear if just for a
morning … the reward/risk ratio simply became unacceptable on the short side,
which has been driving my anticipatory long focus over the past few days.
What I do find somewhat interesting in the morning climb is the relative
weakness of some of the key underlying Q equities including
Microsoft
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12:30 P.M. ET
From my perspective,
it frankly gets touch and go from this point, and I don’t have much of an
afternoon bias … intraday trends lately have been exceeding Bollinger Bands, volatility
bands, extreme Fibonacci targets, etc., so nothing will surprise me. Yet with
morning profits in hand, I’m not going to press matters much this afternoon.
Good Trading!