Nasdaq ETF (QQQ)
By Thu, May 6, 2021
With such a historic bull run going on, our weekly trades our almost always long.
But today, we’re looking at selling instead of buying.
Specifically, today’s Chart of the Week is shorting the Nasdaq ETF (QQQ).
We’re seeing fewer new 52 week highs.
The advance decline line shows that breadth is deteriorating.
And the risk to reward is heavily skewed in our favor if the QQQ is below that 336 level.
Above that, we’re sitting it out.
But below 336, we are short and covering at 275.
Til next week, good trading,
JC Parets
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About the Author
JC Parets, founder of All Star Charts, specializes in finding the most opportunistic risk vs. reward propositions while at the same time bringing a top/down approach to the marketplace whose wide spectrum is rivaled by few. JC begins with a long-term global macro perspective and then works his way down to the individual sector and industry level before ultimately isolating the stocks that best portray a particular thesis. Price is the most important technical indicator, but JC uses supplements such as Momentum, Relative Strength, and Fibonacci analysis to complete the process.
