This morning's strength in the Q's (Nasdaq: QQQQ) propelled the price structure into a major resistance band between 47 and 47.90, as well as towards a confrontation with the July-August down trendline, now at 47.95, which I think will prove to be impenetrable in the absence either of a surprise cut in the Fed funds rate OR a pullback into the 46.50 area first. It is with that in mind that I hold a 50% short position in the Q's in our model portfolio against my other long positions as a "speculative" hedge (how's that for an oxymoronic phrase?) in the upcoming hours.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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