Thursday, November 16, 2006
The QQQQ may have made a near term top. Sentiment has grown overly bullish and yesterday's Fed meeting minutes took some steam out of the move late in the day. We still think that the probabilities are better than even that the QQQQ will test $45.50 over the next few weeks. Be slow to become bearish here. We suspect that the top the QQQQ made yesterday will likely turn out to be similar to the tops made on both October 16 and October 26. A sharp pullback here would do a good job at taking the wind out of the bull's sails, giving the dip buyers a chance to get back in again at lower prices. As long as the charts in our scans continue to look healthy, we plan to stay bullish. Price means much more than all other arguments and price remains bullish. Note: A long term selection was sent to subscribers today via email.