I’m still bearish on QQQ for the next few weeks (and still have a short position from 175.35). I will quickly exit my short if QQQ closes above 175 again (complete gap fill). My target is still the 162-164 support area, which is about 4% lower.
A large part of the reason why I’m bearish on QQQ and the market in general is due to the financial sector (chart above). The XLF has retested the 26.5 low for the 4th time now, and I think we will break below support within the next two weeks.
MU, INTC, and other semiconductor stocks look like a good buy. SOXX tracks the semiconductors, so if you like the charts of MU, INTC and a few other stocks, you could just buy SOXX instead of the individual names.
I’ve analyzed MU and INTC below. I plan to take these two trades near the levels I’ve mentioned. I will update you before next weekend if I take a position during the week.