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 daily 10_14_2018.PNG

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.  

 

BABA daily 10_14_2018.PNG

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.  

MU monthly 10_14_2018.PNG

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.  

2 thoughts on “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.

    1. Hi Shobhitpuri, thanks for the question!

      I usually play with FAANG stocks as well as volatile technology stocks like BABA and MU. I also use a simple stock screener on finviz.com to play with stocks that have a good looking chart setup (hitting support or resistance in uptrend or downtrend).

      In the last few months, I’m focusing on only a few stocks (BABA, MU, WB, FB) that I plan to buy for the long term since I won’t be doing short term trades for a while. The reason for this is that I’m being taxed under my parent’s income bracket since I’m still a dependent. Their short term tax rate is much higher than mine.

      Liked by 1 person

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