Stocks & Commodities V. 24:9 (98): At The Close by Dennis Peterson
Trading The Qs
One way to trade the NASDAQ Composite is to trade
the QQQQ (NASDAQ 100 exchange traded fund). In
recent days, trading out of my IRA has been challenging, since I canít short any stock in that account. Trying to find a long entry in a negative market can be a challenge.
So what I did was abandon some indicators and I started to look for lines of support and resistance instead. I would trade those for just one or two bars of profit, but my indicators are designed for swing trading, and catching a few profitable bars to trade is a different problem. I am comfortable doing this since my recollection of Gary B. Smith, formerly of TheStreet.com, is that his primary technique was to find resistance and support and/or patterns. Even when he was using patterns, I would argue it was to find resistance and support. Smith, who had a solid winning record, also used money management, but thatís another story. So this approach has the backing of someone who knows what he is doing.