Just some thoughts on
QQQ
moving into the second half of the year.
As you can see on the posted chart:
-Gap in the daily chart around 360-361.
-Approaching 0.786 retrace from March 2020 low.
-Approaching underbelly of trendline from Feb 2020 high through multiple touch points.
-RSI entering overbought territory on the weekly timeframe. Currently overbought on the daily timeframe.
-Stochastic Oscillator just about maxed out on the weekly timeframe.
My opinion: I think there is a small amount of room left on the chart to push higher one last time to potentially fill the specified gap, move the RSI a little higher on the weekly timeframe, and tag the underbelly of the trendline. However, that is no guarantee and since we are so close I'm OK with shorting aggressively via the $NASDAQ:SQQQ. I initiated a 50% position after market close yesterday (26May2023) and I have reserved the other 50% to add if we do in fact move a little higher. This is not recommendation on my part, I'm just sharing my trading plan. I would cut my losses if we closed and confirmed over 371.50, which would be the next local top to take out. Let's see how this plays out and I will provide a follow-up later in the year.
Good luck all and happy trading.
QQQ
moving into the second half of the year. As you can see on the posted chart:
-Gap in the daily chart around 360-361.
-Approaching 0.786 retrace from March 2020 low.
-Approaching underbelly of trendline from Feb 2020 high through multiple touch points.
-RSI entering overbought territory on the weekly timeframe. Currently overbought on the daily timeframe.
-Stochastic Oscillator just about maxed out on the weekly timeframe.
My opinion: I think there is a small amount of room left on the chart to push higher one last time to potentially fill the specified gap, move the RSI a little higher on the weekly timeframe, and tag the underbelly of the trendline. However, that is no guarantee and since we are so close I'm OK with shorting aggressively via the $NASDAQ:SQQQ. I initiated a 50% position after market close yesterday (26May2023) and I have reserved the other 50% to add if we do in fact move a little higher. This is not recommendation on my part, I'm just sharing my trading plan. I would cut my losses if we closed and confirmed over 371.50, which would be the next local top to take out. Let's see how this plays out and I will provide a follow-up later in the year.
Good luck all and happy trading.
Comment:
Nice price action for the bears yesterday as it appears we may have had the blow off top. We will need to see more price action and confirmation, but it seems this move is all but done for the time being. Active in
SOXS
,
SQQQ
, and short $TQQQ.
SOXS
,
SQQQ
, and short $TQQQ.
Comment:
Still in $SOXS. I've bailed on the other two as it looks like we are going a little higher to the gap fill. I plan to reenter there. I've also entered some
QQQ
puts.
QQQ
puts.
Comment:
Gap at 360 still isn't filled, but what looks to be a topping tail was put in yesterday. I still expect the gap to fill because we are so close, but buying exhaustion may be here.