- Broadening formation from December 2020 to February 2021
- Top-bottom was 28-18
- Noticed breakout 28 in early March
- Short base and consolidation in March offered an entry point at 32 at top of the upper boundary
- Opened @32.37 on 03/26. It did not rally immediately but moved around 32
- Once it started to climb, AA went straight up to finish +34% profits
Nasdaq (Nasdaq-100 ETF: QQQ) was a strong leader prior to topping out on March 9, 2000. This is very similar to today’s market with about 100% gains from February 2020 to February 2021
Dow (ETF: DIA) and S&P (ETF: SPY) lagged behind Nasdaq during the Nasdaq rally
When Nasdaq reversed from the top to its first stage, Dow and S&P were still near the record-high...
- Leadership rotation began on 02/16 where Nasdaq-100 (QQQ) gave up its upside leadership role
- Dow (DIA) is getting strong every day with a new high today
- S&P stays in the middle
- Market direction can be determined by looking at SPY to see if being dragged up or down
- Downside power seems to be stronger with QQQ so be prepared for full-scale downtrend or sell-off
Want to know what will happen next? Check out the QQQ chart back to 1999-2000 when Nasdaq made the top in March 2000. It was a scary drop near -80% for the Nasdaq index in the next 12-15 months for the dot com bubbles.
Today's intra-day rebound was very similar to April 4, 2020. (please check by yourself)
Then, it was a three-day rebound, death-cross (20-50...
Classic bearish head-and-shoulder setup after about +100% gains in a year
Neckline broke with high volume
50 DMA broken
Lack of support due to straight-up rally
The next potential support is 200 DMA.
Stronger rebound and support is at 250
we bought RCL that was about +10% on 02/16. This is the breakout day.
From the featured chart, we can easily identify its bullish falling wedge pattern. Its breakout with higher volume. Most importantly, the entire cruise industry was up altogether (RCL, CCL, NCLH) together with airliners and hotels.
The fundamental reason is its bullish outlook for decline...
When a stock performed so well that became extended for a proper entry point, RNG provided another opportunity as an alternative choice for almost the same business.
Last November we noticed ZM began to slow down but RNG picked up its upside momentum. This situation continued from November to December 2020. Thus, we decided to get in RNG on 12/02/2020.
AXON made a strong move in January 2021 in responding to 2020 various riots like BLM, Antifa and elections. Technically, the entry point of 01/12 132 was an ideal entry point because AXON never touched this level again. It means holding this position in the portfolio was never in the red color.
However, the exit point is not desirable even with +29% profits.
Technically, CCJ registered a +10% gap-up breakout from an ideal round-shape cup pattern. Thus, it got our attention to follow up with CCJ. We decided to get in after four trading sessions on 12/11/2020 near 13 because 12-13 formed to support.
It went up well for the next few weeks.
Although there was a deep pullback almost wiped out all paper profits. But we...
Earlier accumulation volume patterns got our attention (July 2020) with a cup pattern. After December 2020, it began to turn on its engine and began to fly. January and February were very volatile that we held through it. We did not sell on the top but +50% profits still a reward.
NVAX provides desirable sideway patterns both from September-November 2020 and December-January 2021 so it gave us a chance to study NVAX from technical and fundamental perspectives.
After we accumulated twice in January 2021, NVAX was discovered and shot to the sky. We took a quick profit first. Then, COVID-19 began to decline, which caused NVAX to slow down...
WGO finished its downtrend and made a short base 45-54 in October-November
December 1-15, 2020 began to show upside momentum because it moved to the range 54-59
When 59 is taking out, it is time to get in for a smooth uphill ride of +19% profits within two months
11/06 was the first hint that TTWO quickly approached 180. Its pullback for the next 3 weeks offered opportunity to wait for its second arrival to around 175-180 range.
11/25 was the day that TTWO accumulated its upside power to come back to near 180 level.
We were ready to get in 11/25 at 174.28 when rallied just about to start
At the same time holiday day...