Hello Jim,
Well well. The QQQ P&F chart is showing some strength! Here's what she (yes, she's my pretty baby now) looks like:
114
112 X
110 4 O
108 X O X
106 X X X O X
104 X X O X O X O X
102 X O X O X X X O X O X
100 X X O X 2 X O X O X O X O X
99 X O X O X O X O X O X O X O X
98 X O X O X O X O X O X O X O < 2nd BLRL
97 X O X O O O X O X O +
96 X O X * O X O X *
95 X O X * O X 3 X *
94 X O X * O O * < BRSL
93 1 O X * +
92 X O *
91 X + *
90 X + *
89 X + *
88 X + *
87 X + * < BRSL
86 X +
85 X + < 1st BLRL
84 X X +
83 X O X +
82 X X O X +
81 X X O X O +
80 X O X O X +
79 X O X O +
78 X O X +
77 X C +
76 X + +
75 X + +
74 X + + < BLSL
73 X + +
72 X + +
71 B + +
70 X + +
69 O X + +
68 O X + +
67 A X +
66 O + X +
65 O + X +
64 O + X +
63 O + X +
62 O X X X +
61 O X O X O X +
60 O X O X O X +
59 O O X O +
58 O X +
57 O X +
56 O X +
55 O X +
54 O +
53 +
BulLish Support Line (BLSL); BulLish Resistance Line (BLRL); BeaRish Support Line (BRSP); BeaRish Resistance Line (BRRL) and High Pole Formation (HPF).
QQQ reversed up last night to the 106 box and tonight closed the 108 box. One of my favorite plays is to buy on a positive reversal. This simply means that instead of buying on a pullback (one never knows when the hell it's going to stop going the wrong way) you wait for a positive reversal back up off of the pullback. In this way you're going the right way, and would set the stop loss order at 97.
In my last post I thought we might see a double bottom sell signal because of the high pole formation. As of tonight, I don't think so. Why? Virtually all my short and long term P&F indicators are bullish now. The QQQ Bullish % chart (see below) has reversed up. And, the secondary indicators I now watch are signaling more upside.
Notice how the 2nd BLRL held the last column of O's for good support. In addition, there is a Revised BLSL at 97.
You can see the old horizontal resistance at 112. The 3rd BLRL is also setting at 112. This will be some breakout if it goes through this point.
Its bullish price objective is 130.
QQQ BULLISH PERCENT CHART
The grand ole P&F Italian master Chartseer has been keeping daily QQQ Bullish chart data since 3/12/99. The daily chart looks like this:
72
70 X
68 X O
66 X O
64 O
62 O X
60 O X O
58 O X O
56 O X O
54 O X O
52 O X O
50 O X O X
48 O X O X
46 O X O X
44 O X O X
42 O X O X
40 O O
This Bullish % chart is in Bear Correction risk status. (50% of the 100 stocks that make up the QQQ are on a P&F buy signal. And that means the other 50 are on sell signals.) New buy signals from ATML, CBRL, DLTR, MXIM, NTLI, TLAB, VTSS.
BULLISH PERCENT RISK STATUS DEFINITIONS:
BULL CONFIRMED: Occurs when a column of X's moves above the previous column of X's.
BULL CORRECTION: Occurs when a column of X's in Bull Confirmed risk status reverses down to a column of O's and 1) does not move below the previous column of O's, or 2) reverses down from above the 70% level but does not move to the 68% level or lower.
BULL ALERT: Occurs when a column of O's in Bear Confirmed risk status drops to the 30% level or lower, and then reverses up to a column of X's and does not move above the previous column of X's.
BEAR CONFIRMED: Occurs when a column of O's moves below the previous column of O's.
BEAR CORRECTION: Occurs when a column of O's in a Bear Confirmed risk status reverses up to a column of X's, and does not move above the previous column of X's.
BEAR ALERT: Occurs when a column of X's in Bull Confirmed risk status moves to the 70% level or higher, and then reverses down to a column of O's that drop to the 68% level or lower, and does not move below the previous column of O's.
NOTE: The above is just for grins and chart discussions. No recommendations of any kind are being made<g>.
Take care,
Eric |
