Why This Is An Excellent Market For Short-Term Traders
Both major markets are trading in
the area of their respective hourly supports as we go to press
after yet another episode of gap and trap that
likely continues to befuddle many a fund manager and retail investor trying to
position for profits in a market that remains best suited to short-term
traders, in terms of risk management.
The early trade has been reflective of a solid trading pace, with opportunities
on both the long and short sides. Early longs off the 13-minute support paid
nicely as have shorts off the subsequent trend reversal which was preceded by
screaming price/momentum divergence on the climb. Both markets have broken down
from bearish cups which followed, and are playing ping-pong between 13-minute
and hourly supports.
A break of the current 13 vs. 60 conflict may provide clues into the afternoon
trade.
ES (S&P)
Wednesday April 16, 2003 12:00 PM ET NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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