Thursday, December 06, 2007

Qs redux

Top chart is the 3 linear regression daily channel study, lower chart is the 5 minute bar trading layout.
The Qs performed pretty much like yesterday. We did get a retreat in the first hour, which I considered a gift horse and bought back my short naked calls for a .03 loss, which turned out to be a wise move since if I'll held them I would have been down .20 at the close. I really didn't see the last 90 minute momo coming. Volume was pretty weak for most of the morning with a lot of volatility in the NAZ100 components. The initial timid touch of R1 in the first 30 minutes suggested we might stay in a narrow range today but the 14:30 cross up over the R1 was on solid volume. . .although the surge was probably a reflection on the perfectly timed breakthrough in MSFT, which had otherwise been doodling around all day until someone pulled the trigger. The market now seems on a juggernaut to take out the old highs and I am now net long on the portfolio. My current view is to add to the long side on pullbacks.

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