Backing out all of the information we think we know like persistently over bullish sentiment, over valuation by many metrics, including the Citi Economic Surprise index and Yardeni’s home cooked fundamental stew, margin debt rising to new highs and big picture overbought status… taking all of that out of the equation on the stock market in general, QQQ in particular is at what someone who’s just got to have tech would consider a buying opportunity. A lower low to May would be the proverbial turd in the punch bowl. But for now, it’s a higher low.
Indeed, I actually took a try, buying back Mr. Softie on the hard down toward support after selling last Thursday. But we still have the June seasonal to contend with along with the Gold/Silver ratio. One thing the bulls have going is that Junk bonds are positive and have not broken down vs. higher quality bonds.
Anyway, here is QQQ at a higher low. But man, that is some serious volume trying to get out of this momo play as it begins a seasonal pattern of its own; that would be the Hamptons seasonal.
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