Clear divergence formed in the QQQ daily chart. Tomorrow the QQQ could test a resistance level at the 50 day MA again as well as the last failed ceiling at 324.50. Could be a break out but could trigger the second leg of the tech selloff that started last week. I am of the opinion that the tech selloff isn't over, but tomorrow will tell us if it could continue next week or if the bulls will drive the market up for a little while longer.
I continue to have many of my holdings hedged using puts purchased with covered calls. Anything that has recently shown weakness or is showing divergence or buyer fatigue is hedged including AXP and CVX.
I continue to have many of my holdings hedged using puts purchased with covered calls. Anything that has recently shown weakness or is showing divergence or buyer fatigue is hedged including AXP and CVX.
Comment:
Appears that 324 has been rejected by the market. Hopefully the next support will hold and we won't see too many more red days.
