The Qs continue their surge upwards, closing on the high and now resting above the upper Keltner channel. The technicals are showing overbought conditions, but this is an old story that is wearing thin as the market morphs from trading range to trendline. The FOMC news gave a little goose to the market, but it was well on it's way before the ho hum news. Let's see how the market reacts Wednesday, once the Ficaps have a chance to digest the implications.The VIX dropped 8% today and is now 9% below the 10 DSMA and knocking on the lower band. Recent history suggests that it may hug the band for a few days before moving up.
Because I am finding it difficult to make a good short term risk/reward case for the Qs, I'm concentrating my short term trades on NDAQ, EK, MSFT, WMT, EBAY and XRX using both trading range tactics (EK,WMT and XRX) and trendline tactics (NDAQ,MSFT and EBAY). An odd bunch of stocks you may think, but they perform with stellar precision in coordination with my indicators.
More on trading range versus trendline tactics this weekend.
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