10/14/2018 Markets drop more than I expected this week, and this selling was reminiscent of February. We will discuss QQQ, BABA, MU, and FB today.

Hi everyone, welcome back.

Let’s take a look at QQQ, BABA, MU, and then discuss what I think will happen in the next week and onwards.

QQQ broke through the 175 to 177.5 support level last week.  It looks like we should avoid taking any trades here, and look to buy near the most recent low (169-171 ish) or short sell in the 177.5 to 180 level.  I believe there’s a higher chance we move up first, and then drop to retest the high 160s.  Overall, the market looks very damaged, and I expect a lot more downside in the coming 3-6 months.  

Daily chart of BABA above.

I think that BABA is beginning a new downtrend.  I believe it would be smart to buy here if you plan to hold for at least 1 year, but waiting until a retest of the lows at 135 would also make sense.  The short-term direction is unclear, but my gut says we move lower next week.  

Here’s the monthly chart of MU.  Notice how we’ve broken the uptrend line, and the next area of support is between ~26 and 38.  If we drop like we did in 2015, we will be retesting the mid-20s (bottom of rectangle above).  I am not buying here as I believe we have begun a new downtrend and will hit at least the low 30s.  

Facebook has reached my add-on target of 150, so I think it would be a good idea for long-term holders to add here.  The next level to buy at is 115-125.