MIKE PAULENOFF'S ETF TRADING DIARY
So, the $64,000 question is whether or not we saw THE capitulation low during the first 20 minutes of trading this morning, or one of a series of capitulation lows that will be forthcoming in the upcoming hours/days? Let's be aware that all of the major indices remain in negative territory on the session, which eliminates THE capitulation scenario unless they close in positive territory. It may seem like an eternity, but we must wait for the final 20-40 minutes of trading today to get more answers. In the meantime, I remain 50% long the Q's in our model portfolio with stops in new low territory -- as I try to keep my emotions in check during what could be a real roller coaster ride as the day grows older. Purely from a technical perspective, let's just understand that my current long position is to try to take advantage of intraday volatility, because for the Q's to get anything going on the upside prices must hurdle and sustain the declining tops line, now at 32.90.
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