8/28/2019 Volatility continues as stocks close somewhat lower for the week. No change from bearish forecast for next few weeks.

Happy Sunday, I hope all is well!

There’s no change to my bearish forecast for the next few weeks. Something interesting to note is that optimism is at an unusually low level, meaning we will likely bounce upwards. Either way, I think we move lower – Below is the weekly chart of QQQ. 

QQQ Weekly 8_18_2019.JPG

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8/11/2019 Stocks get slammed to start the week, but close neutral. I’m leaning towards more downside in the next few weeks.

Hi everyone. During the last few weeks I mentioned that QQQ would likely drop to the 170-175 level before we move higher. During an after hours session earlier this week, QQQ actually did hit at or near the 175 level. Take a look at the weekly chart of QQQ below. 

QQQ weekly 8_11_2019.JPG

Notice how we are still coming off a weekly divergence (higher high for the index in terms of price, but a lower RSI for the most recent peak), so I still expect QQQ to move towards that 170-175 support level. Since we are still in an uptrend, buying instead of selling is what I prefer when I trade. Instead of selling or going short here, buying in the low 170s looking for a bounce back to the low 190s seems like a more logical move. 

7/27/2019 QQQ and SPY reach new highs while DIA struggles. Weekly RSI divergences point to lower prices ahead.

Hi everyone. Lots of earnings from the big tech companies are over. I still think we are near or at a local top because of the weekly RSI divergences. However, it does look like the uptrend is intact, so I do expect to see new highs after we pull back. 

QQQ weekly 7_28_2019

Notice how the weekly RSI is at about 65 at this new high when the previous weekly RSI high was at 70.