morokko65: >>Went Long QQQ at $39.92, any thoughts on where to exit the Qs?<<
Wow! You got in within 5 cents of the bottom, I'm gonna ask YOU where to exit, lol! Congrats.
But since you asked my opinion, and assuming you are looking to take profits quickly, I'm in the camp that says Thursday was Squeeze Day and that this "rally" is over.
On QQQ, Friday's highs effectively reached resistance at the upper channel line extendig down from the May highs, the 50 day ema (not the dma yet), and the .618 retrace of the July decline. The major gap at 43.45 has been filled and we have now retested the break of the trendline that extended up from the April lows, which was breached by the 43.45 gap. After encountering these numerous resistances, the Qs pulled back on Friday afternoon and closed near the lows of the day, with a long upper shadow on the daily candlestick. Hourly stochastics are now crossed down and are well below 80, but with plenty of room to drop before getting short-term oversold again. On the weekly chart, the 8 week simple moving average continues to provide resistance which contains the highs of the week and is still trending down.
Rally? What rally? The gap below on the daily chart is huge and will probably be filled this week, IMHO. I agree with your upside target but have doubts that we will even get there. For Monday, immediate support is at the 20 hour and 50 hour emas at 43. If we drop hard through there, I think the bears will be back in charge.
Good Trading,
Phoenix |
