[QQQ, Daily] NASDAQ 100 Index Tracking Stock
The daily QQQ chart is a good example of why it always seems easier to wait until something really breaks out before trading it. We've been writing about it for two weeks, and it keeps hanging in. This is the life story of a breakout player: stalk and fake, stalk and fake. The strategy is to reduce size while stalking, since it might not go, and then trade every single setup inside the chop zone. There is no other way to get it, short of being psychic. Or simply wait for the move and then slam one in.
In the Handbook, we call this stealth bear flag, and so far, while it has not broken down, there is no evidence of any ability to go up. Volume is shrinking as well, so unless it can show us the money, the vulnerability is on the downside.
03.08.04 08:21 #