4/25/2018 Chipotle (CMG), and Advanced Micro Devices (AMD) surge 10% after earnings beat. Facebook (FB) pops up roughly 7% on earnings beat, dragging QQQ up ~1.2% in afterhours trading.

Fun Fact #35

Did you know that “hodler” is the misspelling for a “holder” of bitcoins? I think it’s funny to call bitcoin buyers “hodlers” instead of using the term “bag holders.” 

Market Stocks 4_25_2018.PNG

Since earnings season affects all stocks (as you can see with Facebook’s massive earnings beat dragging up the entire market afterhours) it’s basically gambling for me to set targets right now. From price action alone, I’m bearish on the QQQ. However, I would only consider shorting QQQ if it reaches 162. For bulls, I think it’s good to hold until QQQ hits 162, or just sit on cash to add shares when QQQ tests the 150-154 support zone. 

Chipotle (CMG) and Advanced Micro Devices (AMD) are up roughly 10% in afterhours after solid earnings beats. Today was a good day for the bulls. 

Yesterday (4/24/2018), I gave my analysis of QQQ on TradingView, a great charting platform. My username is bigfry on there as well. Anyways, below is what I said:

“Although I think we are currently due for a nice bounce back upwards, I wouldn’t be surprised to see QQQ rapidly drop and retest the 150-154 zone in the next few days.

The main reason I think shorting near 162 makes sense is because QQQ could not sustain the breakout of the 162 level. Failed breakouts move strongly in the opposite direction of the previous trend because a lot of traders are trapped near the previous highs, and panic sell out of fear of losing even more.

If QQQ does rally upwards, and you like short selling, I think shorting at or near 162 with a stop loss near 167 makes sense. You profit target would be the 152-154 range. This trade has a RR of about 2, which is quite good.

For a reference, I don’t like short selling uptrending stocks, so I’m waiting to buy QQQ in the 150-154 support zone.”


 

I’m glad MU bounced quite hard today, as it shows that sellers are losing pressure, and buyers are taking control of the price action again.  Also, I’d look like an idiot if MU kept dropping after I said yesterday that MU was a “screaming buy.”

QQQ 4_25_2018.PNG

Here’s the QQQ. The horizontal line at 154 represents the bottom of the trading range, meaning this level is a very important support level. 162 is a minor resistance level that QQQ had trouble pushing through in the past. 

The markets actually sold off quite hard in the morning, but clawed back the losses and closed slightly green.  I’ve noticed that in the last couple days, the market has sold off hard in the morning, but rallied towards the end of the day.  This is a sign of “smart money” moving in to buy stocks.  The “dumb money” represents the retail traders (like you and me, sorry).  Apparently we do the opposite of what we are “supposed” to do. 

I would like to get to know you better, so if you’d like, please shoot me a message on stocktwits or tradingview. You can also email me at nharwit@gmail.com. 

Good luck tomorrow, and have a great rest of your Wednesday!

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