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Tuesday August 13, 2002
Here I go again, saying 23.60. The QQQ's continue to play with that attractor, as a level of resistance, then a level of support and back and forth again. It has been good for the intraday players (Gold and Platinum folks), but frustrating for the daily players (Bronze and Silver).
Our model had a buy signal near the close yesterday (12:45p) from 23.33. If you took the trade just as the model called it out on the crossovers, you would have had a small loss today when the model went short at 23.27. The nimble players, however, would have seen price back away from the top Bollinger line at around 8:30a and would also have seen the RSI back off of its upward momentum and begin to curl over. That would have been the time to take profits! But, that's just for you nimble guys.
A little later, at 9:00a in fact, the RSI passed under the 65 level, showing us that the bullishness was over for the time being, and would have still rescued some of the profits from the long trade. If you ignored the market talking to you at those spots, then you would have gone short at 11:45a, at a price of 23.27 and now you are holding overnight in a short trade with $3,350 profit in it.
For tomorrow, the Average True Range has expanded on the 15-minute chart, telling us that we can expect some spikey movement tomorrow. The RSI (again 15-minute) is pretty low at 18.17, and is likely to at least make an attempted comeback. My Dynamic Moving Average is still solidly moving down, so we will likely see a run to 22.10 before bouncing. Just more of the fear and greed stuff.
On the 1-minute chart, RSI is still hanging out down around 45, facing downward. That tells me there is more weakness to come. But, it could just as easily bounce off the 45 and run back up. Watch your email boxes tomorrow for any intraday alerts to paid up platinum members. If the configuration changes, I'll let you know what I see. For now it looks like RSI is in a congestion pattern (ascending triangle) out of which it must break, one way or the other. The 1-minute chart has started to get week inside the Bollinger Bands and is still holding solidly under the SDMA ()
Everything short term still says short, so stay nimble and watch for the supporting signs from the SDMA, RSI and any key support and resistance attractors to be broken.
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