Thursday, November 30, 2006
Wednesday, November 29, 2006
Monday, November 27, 2006
Wednesday, November 22, 2006
Tuesday, November 21, 2006
Not much has changed since Friday's trading, so we will keep this brief and just summarize the current environment.
The QQQQ has a likely target of $45.30-$45.50. Given the money flow erosion on the Dow and the fact that other world markets are now breaking down (
Monday, November 20, 2006
Friday, November 17, 2006
The QQQQ continues to be due for a pull back to its uptrend line provided in Wednesday's report. Continued gains from this level without a pull back make for an unstable climb, which would leave it more vulnerable for a hard correction. Despite the fact that this trend has been alive for longer than we have been used to trends lasting over the past couple of years, most technicals are in pretty good shape. Beyond that, we will refrain from calling a top. So many analysts continue to call for a top and as such have kept their followers from participating in this trend. Stops will take us out when the trend reverses. Once again, price is king and price remains solidly up.
As for today, today is options expiration and we tend to like to sit back and wait out this day each month. Options week is hard enough to navigate and on the day of expiration, price action can be even more meaningless. Next week is a short week as well, so it's a good idea to manage open positions and not open anything new unless something extraordinary presents itself.
Have a great weekend everyone!
Thursday, November 16, 2006
Wednesday, November 15, 2006
From the chart above you can see that the immediate trend doesn't have much more room to spare before a correction takes place. Panning back to a 5-year view however note that the QQQQ is gunning for its overhead channel resistance. Sine 2004 the channel top drawn on the chart below has been turning back the QQQQ. Over the coming weeks this resistance area of $45.50 should act as a price magnet. What happens after the QQQQ reaches this area is anyone's best guess. It is interesting to note, however, that the S&P and Dow have both taken out their overhead channel resistance and are continuing higher. It's too early to know if this has any real significance. For now though, the trend remains friendly to bulls.