With the preamble that cash is the best position as risk rises (which it is doing as the market bounce continues and VIX sinks further) and that the FOMC is a big wild card in the markets this week, here is what looks like a setup in the making in tech, using QQQ. This is for those who are bearish or want to hedge long exposure.
QQQ remains in a daily downtrend but has been on the bounce plan for some time now. We have made it all the way back to the SMA 200, with the 50 MA’s just above. QQQ is at resistance and a red dotted downtrend line is drawn as additional resistance. Extrapolate these parameters to any leveraged ETF’s that may be used.
Sell Short Target: 106.75 to 107.50
Buy-to-Cover Target: a test of the lows around 90 +/-
Stop Loss: to suit risk tolerance on a break above 108.50 or so (and the SMA 50)
A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst.