The Sunny Side of the Street

INDU_D_20030226.jpg (163810 bytes)
Figure 1- 15-minute Dow [click to enlarge]		  
symbol Upper Attractor Lower Attractor
INDU 9075 7650
QQQ 28.4 21.93
SPh03 875 815
GC 445 270
WEDNESDAY NIGHT - February 26, 2003 xx Visit (and frequent) the new SSS Bulletin Board where you can post messages for Sunny and for other subscribers. xx
The Dow (Figure 1, above) continues its steady pace marching toward the lower attractor at 7650.  In fact, it is almost there, closing today at 7806.  With the current ATR at 150 points, the Dow could just about get there tomorrow.  My models on the Dow are short on the daily chart, but long on the 15-minute chart.

Trading the Sunny_Bands method on the 15-minute Dow chart, however, would have ignored the signal to go long, and would be still waiting for a signal in either direction.
Nasdaq Intraday Chart
Nasdaq S&P 500

The 15-minute chart of the QQQs (Figure 2) shows some kind of an M pattern, double-topping at 25.35 and then failing today to make it through the 24.87 zone.  That, I think, was significant.  All signs for tomorrow seem to be pointing down, with an attempt to hit 23.82 as the next target.  The ATR has been sluggish, with a turn about to happen, that would call for an increase in the velocity as the QQQs head down for the next target.  RSI on this chart left bullish territory pretty quickly this morning and made it to the other side, getting into bearish territory by this afternoon.  I expect tomorrow to get even deeper into bearish numbers.  There is an Attractor at 24.16 that might present the move down a bit of a stumbling block as it tries heading south.  That would make tomorrow's trading difficult as it could spend much of the day churning around the 24.16 level before completing the move on down.
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QQQ_15_20030226.jpg (185901 bytes)
Figure 2- QQQ 15-minute
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SPY_05_20030226.jpg (189657 bytes)   
Figure 3- SPY 5-minute chart		 On the 5-minute SPY chart, I traded the Attractors today, sending email alerts to subscribers throughout the day.  Subscribers' nerves were challenged today as I said I was stubbornly waiting for the Attractor to be broken before throwing in the towel.  But price never got above the line and in fact it turned around as I anticipated and headed down stopping right at the predicted lower Attractor, where I took my profits.  Yes, I too am human, and was sweating through the whole trade.  But, on exiting I was invigorated by the thrill of a clean mathematical trade.

Thursday will be more of the same kind of trading as Wednesday.  Chop and drop.  I expect the markets will continue on down, but will have some difficulty getting on down to the Attractor at 23.82 QQQ and 82.62 SPY.
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