Friday, November 02, 2007

Qs Rally

The upper linear regression chart shows that the Qs are temporarily out of danger. How the long tail doji will be resolved remains to be seen, but current indications are that the NAZ continues to be a relative haven within the markets as the financials continue to hemorrhage and weaken the wider market sectors.
Some good intraday volatility in the Qs provided several nice setups. The in ital drop and subsequent consolidation at S1 provided the first setup around 10:15. It was a quick trip up, with a parabolic exit flashed at 11:00. I was actually looking for more strength, so didn't take the short leg signal. When the Qs retraced down to S1 and consolidated there for 15 minutes, I was ready for the parabolic long signal and took the trade. The uptrend for the next 90 minutes was uninterrupted, and as the Qs approached R1 the momentum faltered and I was ready to exit when the parabolic flashed at 13:10. With 3 hours to go and the weekend ahead I passed on further signals, preferring to avoid a closing sell off (which never came).

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