QQQ is a strong sell.
Thesis: QQQ has completed a 5 Wave Cycle and will now begin the correction phase. Big Tech is immensely overvalued here.
QQQ's chart has setup an irregular correction which occurs after a 5 Wave Cycle. Irregular Corrections have a phenomenon called 'Double Retracement'. The first retrace is the extension of the 5th Wave and the second is ...
$IWM been leading markets up most of the time, looks like it is leading down this time. on purely technical aspect, it retested the neckline of H&S, also retested the break of the flag. if this confirms, price target is around 117-118. everybody seemed to be talking about inverted H&S playing out on SPY few weeks ago (which obviously failed). I don't really see ...
... for a 1.08/contract credit.
Adding to my January cycle QQQ core position after stripping off some units earlier (See Post Below). Since the overall position remains fairly delta neutral, I'm not looking to add delta with this trade, so am basically going with a neutral setup.
With the previous close costing a .71 debit and this open paying 1.08, my January ...
For what it's worth, I don't have any Gravity Points identified under the "Gravity Point Very Hard"
Chart Dump this week. See what I see.
Last Week's Post
Other Relevant ...
Not a whole lot else to say other than that.
Transports are the brother of Small Caps in my opinion as far as leading the rest of the market.
Just want to point this out because it's a canary in the coal mine and easily missed.
1 Wk % Change:
SPY: -4.55%
NDX: -4.92%
DIA: -4.44%
IWM: -5.52% (Leading)
DJT: -10.14%......?
Current Price at Posting: 25588
Directional Bias: Long
Price Target: 25850+
Good Entry: 25270-25320
Risk/Reward: Max of 50 point risk / Potential Reward of 500-600 points.
Trade Idea Invalidation: Hourly Candle close below 25250
Current Price at Posting: 178.58
Directional Bias: Long
Price Target: 187
Good Entry: 176-178
Risk/Reward: Max of $2 risk / Potential Reward of $10
Trade Idea Invalidation: daily Candle close below 175
Here is your bearish case, 2630 the neckline from February needs to hold, if it breaks down, the first tp will be 2250.
Short when the 2630 breakdown confirmed.
Long QQQ's if you dare. Clearly defined range still intact. Be wary of false breakouts. Perhaps best to wait and see until range is broken for higher conviction/direction.
I go over the moving averages this time; as well as, looking at some Historic Chart situations leading up to the crash of 2008. We touch some correlations of BTC and the stocks. Sneak Peak of my BTC long term chart.
Enjoy,
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