Why I Stress This Combination

I’ve highlighted the daily price vs. momentum divergence below, which as we’ve
discussed ad infinitum over the last few years, typically trades toward trend
support, which then remains in a “Trust Until Broken” mode until the daily
finally breaks. Thus, covering Friday’s intraday shorts into the daily approach
and reopening them upon the daily break were high-probability intraday options
for those preferring to be in cash over the weekend.  I’m stressing the
combination because it reflects one of the cornerstone combinations of our
educational series, and has always been one of my personal favorites as it
provides ample heads-up notice.

Intraday strength divergences into any further downtrend extensions can help
guide the closing of any remaining short-term short positions.

As Larry Connors mentioned in his

weekend piece, we’ll be shifting the timing of this column from daily
(Saturday) to weekly, effective after today.  At this end, the shift will
provide me with some needed flexibility and R&R as we head into the slower
summer days — and yes, there’s truth to the report that the sun is still out
there for those in the Northeast wetlands — not to mention time for a
regularly scheduled lunch for the first time in two years.

As I’ve mentioned a few times in the past, I remain humbled by and gracious for
the strong response to the daily column over the past few years. What began as a
modest effort of sharing my candid trading thoughts via a QQQ column in response
to Larry Connors’ invitation, evolved and expanded into a two-year daily
dialogue on multiple index vehicles, dispelling a plethora of industry myths,
and sharing my strongly-held beliefs of what trading is and isn’t about in this
hype-deafening business that will continue to chew up the majority of those who
attempt its pursuit, and which will humble 100% from time to time.