Well that worked out pretty well so far. Since my last post, QQQQ is up 3%.
I think it has a ways to go.
Exhibit A: Cramer came out blathering that the Dow would hit 8,200. That's a buy signal if ever I heard one!
Exhibit B: Financial press still grumbling about bear markets and where to find good CD rates. Another buy signal.
The above are really just amusing contrarian signals, but I maintain that this market is headed UP. However, about the time everybody has forgotten all this bearishness and they think happy days are here again, and Cramer's insisting the Dow will hit 12,000 by the end of the year, then WHAM! That's when this market will implode, and this time it won't be pretty.
yfrog.com
All my indicators signal long now, and I am long QQQQ, OIH, RIENG, and the long bond. My upside target for QQQQ is $47.50, which is 4.4% higher than today's close. At that level, there will be a convergence of pretty strong overhead resistance from the declining 50sma, the upper rail of the BBs, and chart resistance.
There is a chance the index could trade considerably higher, especially if volume remains as anemic as it has been the last few sessions. But for now, I anticipate I'll be flipping current long positions to short as $47.50 is approached.
TMD |
