QQQ Daily, 04/17/2014. Remains bound in price channel.
Is this price channel a large bull flag or is it the start of a falling price trend? The answer will come with either a closing price somewhere around 88 on the upside or a closing price below what has now become an important support. Until then, the chart looks bullish for now but the Q's will need to get above the 20MA at around $87 to confirm the recent move and to show that the Q's can and want to move higher.
Per my method, a buy signal would come for the Q's in the daily time frame with a bullish cross of the 9EMA up through the 20MA. As long as Q's don't fall off a cliff next week, then that cross should come by the end of next week's trading. However, and per my method, I did get a 'buy' signal on the Q's in the 60min time frame on Wednesday. This is because in that time frame, the 13EMA crossed up through the 34EMA. As a result I started a position in TQQQ at 57.40 on Thursday. This is a small position now and I intend to add shares as prices rise, assuming that prices are going to rise. And if prices don't rise, then I will exit the position.
One last thing: notice on the chart that the CCI rose above -100 on Tuesday, the 15th. I use the -100 level as a sign of weakness as stocks are moving down and as a sign of strength as stocks are moving up. I have found that when the CCI does in fact rise back above -100 that it often signals a bottom and a potential initial entry point. This is not how the CCI was intended to be used but do your own due diligence on this type of signal and see if it is of any value to you.
GL in the week ahead.
Per my method, a buy signal would come for the Q's in the daily time frame with a bullish cross of the 9EMA up through the 20MA. As long as Q's don't fall off a cliff next week, then that cross should come by the end of next week's trading. However, and per my method, I did get a 'buy' signal on the Q's in the 60min time frame on Wednesday. This is because in that time frame, the 13EMA crossed up through the 34EMA. As a result I started a position in TQQQ at 57.40 on Thursday. This is a small position now and I intend to add shares as prices rise, assuming that prices are going to rise. And if prices don't rise, then I will exit the position.
One last thing: notice on the chart that the CCI rose above -100 on Tuesday, the 15th. I use the -100 level as a sign of weakness as stocks are moving down and as a sign of strength as stocks are moving up. I have found that when the CCI does in fact rise back above -100 that it often signals a bottom and a potential initial entry point. This is not how the CCI was intended to be used but do your own due diligence on this type of signal and see if it is of any value to you.
GL in the week ahead.