In the last update I said to look for the opposite of a downside reversal which is a capitulation event, and rather a increasing volume churning event with little to no positive price movement, usually accompanied by a bearish reversal candle.
The Q's are getting close to that point, at which time I may bring the earlier QQQ Put speculative position,
Trade Idea: SPECULATIVE QQQ, up to full size as well as a number of other opportunities.
Here's what we are looking at so far as the a.m. trade/games burn off...
QQQ 15 min larger volume on a candle that's not moving, I'd like to see a larger version of this, but this is an indication of bearish churning...
On a 30 min chart the candlesticks have gone from momentum to loss of momentum and a flat area with the second to last candle with a Doji Star loss of momentum and longer upper wick representing higher prices being rejected, also a sign of churning.
Meanwhile the NYSE TICK did break +1000 briefly...
But now its trending down and at a very slow =/- 250 area.
VXX is looking better and more interesting and some other groups are looking interesting, such as Financials underperformance.
Remember the SPX 150 day moving average set up, that's where the stops will be and sentiment has most definitely shifted from extremely bearish to bullish. Too many people on one side of the boat will do it everytime...
No comments:
Post a Comment