QQQQ update
QQQQ found support once again at its 50 dma, barely managing a close above 38.2% Jun/Jul (46.09). Should we head lower next week, trendline support (off July low) is around 45.60. Below that, we will most certainly test the July lows. Resistance is 46.95, 50% and the overall vicinity of the old June 25 gap. Bulls regain control above 47.57.
We will still keep trading this day by day, but I expect a September rally given the bond drop the past few days (see Tuesday's post on yields). However, any September rally will most likely be another bull trap. I would not place any big bets on the long side until right before the election. If oil bids hard on Monday night, we should get a flush down to test QQQQ 45.60 or so.
Stay away from any bull credit spreads until October/November. The risk is not worth it. Anyone touting those trades should be asked one simple question: are you putting your own money in that trade?
This entry was posted
on Saturday, August 30, 2008 at 8/30/2008 12:25:00 PM.
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