QQQ topping. H&S? Double top? Does it matter?!
Okay, folks. It's bad out there. Yesterday's selloff in QQQ was particularly bad and it carried with full force well past the close, which is not normal. So it's pretty evident to anyone who's not drinking the bullish koolaid that we're in severe correction or worse. So the question then becomes.... what the hell do we do now? Well, first, we need more data. Does it bounce here and go up? We do have some VERY heavy volume today, so something is happening. Either we're going to see a bounce, or we're going to blast right through the theoretical "neckline" that hasn't formed as of yet.
Today's "Option Friday"....which is the 3rd friday of each month where options expire. This and I believe we'll see a bounce next week according to past behavior. Will it last? Who knows. Probably not.
I am particularly concerned if the bounce turns into more of a rebound and starts to climb back towards $384 or so. If we get to that point it's all hands on deck because what happens there will be very telling.
Does it continue to go up? Great! Hopefully the market Gods have been satiated with their pound of flesh and the bottom has been reached.
Does it turn down? Ugh. More data will be needed then, as we're looking at a possible Head and Shoulders pattern. If price reaches the neckline and continues through it? Get out. Get WAY out. That would imply we have another +/- 15% downward left to go.
A LOT can and will change between now and then, predicated mostly on the macroeconomic inflation dilemma and the Fed's response to it. If a very positive report surfaces that shows inflation is quickly subsiding you can probably count on a very bullish response by Mr. Market.
Keep your head on a swivel and your hand on your wallet....it's time to get full-on defensive.
Today's "Option Friday"....which is the 3rd friday of each month where options expire. This and I believe we'll see a bounce next week according to past behavior. Will it last? Who knows. Probably not.
I am particularly concerned if the bounce turns into more of a rebound and starts to climb back towards $384 or so. If we get to that point it's all hands on deck because what happens there will be very telling.
Does it continue to go up? Great! Hopefully the market Gods have been satiated with their pound of flesh and the bottom has been reached.
Does it turn down? Ugh. More data will be needed then, as we're looking at a possible Head and Shoulders pattern. If price reaches the neckline and continues through it? Get out. Get WAY out. That would imply we have another +/- 15% downward left to go.
A LOT can and will change between now and then, predicated mostly on the macroeconomic inflation dilemma and the Fed's response to it. If a very positive report surfaces that shows inflation is quickly subsiding you can probably count on a very bullish response by Mr. Market.
Keep your head on a swivel and your hand on your wallet....it's time to get full-on defensive.