Saturday, December 29, 2007

Qs Weekly Update

The Qs finished up $ 1.04 on the lowest weekly volume for the year, so any technical comments at this juncture are surely suspect and should be considered in the spirit of possibility rather than probability.

The top chart is the weekly 3 LRs study (30,11,3),
the lower chart is the daily 3 LRs study.

My spin on the current trend it that there seems to be considerable overhead resistance around 52.60 for a further short term move up in the Qs. This may, in fact, be overwhelmed by Apple's earnings on the 16th and the other NAZ100 gorillas MSFT and INTC. RIMM already came out strong and the market reaction was very favorable. In the interim, I'm favoring intraday short side plays with the aim of selling the rallies, not buying them. I'm also battle worn enough to know tight stops are essential at this point on the calendar, as job #1 is capital preservation. Next week's shortened session will probably not illuminate the picture much better and although I'd like to drop a butterfly trade on the 51 puts, I holding until Wednesday to avoid a possible Monday surprise.

I recommend at this point that you pour yourself a drink, click on over to the Clueless one's site and carefully read and perhaps reread every word of his posts for End of Year and Friday EOD. Cucca and I have very similar styles and interests as we both focus on Q options and play a variety of similar strategies with them. Our technical interpretations of the market are based on somewhat different parameters and indicators however, and one of the great things about the trading blogosphere is that informed and experienced people are willing to share ideas openly in the spirit of learning and growing (and hopefully to make a few centavos). If you haven't met Cucca before I hope you will enjoy the ride.
Dr. Brett recently suggested the creation a virtual trading rooms between like minded traders to facilitate the exchange of ideas and create a kind of trading synergy. I tried that around September but was deluged with spam and worse from folks who apparently have nothing better to do than create misery for others. I am, however, willing to give it another try and if my trading style and methodology (see sidebars) resonant with you, then I'd be glad to hear from you with the goal of forming a live online forum. My aim is to have as much fun trading as these guys have playing music:

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