Hi everyone, happy holidays. I hope you also have a great new year!
Since QQQ has rebounded nicely off the recent pullback, I believe the next leg is going to be up. I still expect volatility to increase, so instead of buying or selling here, I would be looking to buy options (both calls and puts), in anticipation that they will be worth more when volatility increases.
SPY weekly chart below – it closed flat this week.
BABA weekly chart below. I like the odds and risk reward of being long here, but I’m planning on buying on a retest of the current low at 210 for a better entry.
My trading strategy is to buy uptrending stocks after a pullback, predicting that the uptrend will continue instead of being a reversal of trend. The risk reward is good at current prices, but I plan to start a position near 210 (retest of previous low).
Let’s see what happens next week.