As I said in my previous post I bought some QID effectively shorting QQQ. On the daily chart above of QQQ you can see the resistance lines looming above the current price. Price already went up through the most recent resistance of the previous major high, but there are three more resistance lines. In addition the last two candlesticks were down days, not an uncommon sight in tops. Lastly the 50 MA of QQQ is pointing slightly down.
AAPL is at the top of an extended 3 week move up with no rest. GOOG just went down to its 50 MA. So the two QQQ leaders are not exactly ready for a big move up to help bust through the resistance lines of QQQ.
Taken together it made me decide to short QQQ. I think the odds of success are OK, but nothing is guaranteed so we'll see what happens next.
Howard Milano
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