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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: IHateSourCream who wrote (332)	5/23/2005 11:52:37 AM
From: J.K.	Read Replies (1) \| Respond to of 4814

Hey IHSC, I'm about to head out and saw your post. In case T is not around, let me clarify this point: Terry and I were talking about the weeklies, where the mid-point of the bollinger bands (same as the 20sma) is actually at 36.77. I think you have the dailies in mind, which is at 36.04. -g- J.K.

To: IHateSourCream who wrote (332)	5/23/2005 3:47:05 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 4814

Hi IHSC, I am glad you're looking so carefully, and I really mean that... I can and will make mistakes!! Here is the weekly chart: stockcharts.com[w,a]waclyyay[dd][pb20!d20,2][vc60]&pref=G The middle of the BBs (or 20 sma) is currently at $36.78. On the daily chart, the 200 sma is currently $36.67 stockcharts.com[w,a]daclyyay[dc][pb200!d20,2][vc60]&pref=G The 200 sma on the daily chart is pretty good support, and so is the middle of the BBs on the weekly chart. Now these bound a zone from $36.67 to $36.78. These can be put together in the weekly chart. Now, the 200 sma on the daily chart is not mathematically equivalent to the 40 sma on the weekly chart, but they are usually good approximations of one another. Here they are rather far apart; the 200 sma on the daily chart is $36.67, and the corresponding 40 sma on the weekly chart is $36.92. Usually they are closer than that. But in any case, on this chart you can see the support zone defined by these dynamic levels: stockcharts.com[w,a]waclyyay[dd][pb40!d20,2][vc60]&pref=G I know that some people like to specify exact support levels to the penny. Personally, I like to think in terms of support and resistance regions. Sometimes these are fairly precise levels, but more often there is some "background noise" or "baseline volatility" that is rather meaningless to me, so usually they are not precise levels but rather zones, and this is a good example. Another good example that we used to post about that will become relevant again soon is the resistance zone beginning above $38. So I would define the solid support zone formed by the 200 sma on the daily chart and the middle of the BBs on the weekly chart (20 sma; roughly similar to the 100 sma on the daily chart) as a region of very strong support. Currently, that zone would be $36.67 - $36.78, with some support also at the 40 sma on the weekly chart above that, at $36.92 , but will change slightly with time as these moving averages change. Note also on this last chart that this zone is also an area of chart support extending back to early 2004. So as QQQQ trades down and encounters $36.92, reversal becomes increasingly likely because QQQQ is descending down upon increasingly solid support that summates. Here is a chart with a horizontal line at the top of this support zone, showing how it coincides pretty closely with old chart support/resistance levels (now support, since QQQQ is trading above these levels): stockcharts.com[w,a]waclyyay[de][pb20!a36.78][vc60]&pref=G T