5/30/2018 Markets recover yesterdays losses. It looks like a bear-trap for the QQQ, DIA, and SPY.

Fun Fact #55

A 529 plan is a college savings plan where money is put in post-tax, and then the account grows tax free!  This is similar to a Roth IRA.  


 

Market Stocks 5_30_2018.PNG

My targets have been slightly modified for June 15th.  I am still bullish (more so than before), but if we do break below this minor breakout support level, I will quickly turn bearish for the short term.  

Today’s price action completely wiped out yesterday’s losses.  Since DIA and SPY broke through support yesterday but bounced back today, I think we have a potential bear trap.  Any more upside will result in a lot of shorts panic covering.  I think we might first move sideways or down a bit, then reverse higher next week.  

 

DIA analysis 5_30_2018.PNG

The rectangle shows the consolidation zone, with DIA breaking down below support.  However, notice that price has snapped back into that rectangle.  I predict we break upwards of the rectangle, but it would be advised to sell if it breaks below the bottom of that rectangle again.  

 

SPY analysis 5_30_2018.PNG

The SPY chart looks like the DIA chart, so I’m also expecting an upwards break of the rectangle.  Again, another break below 270 is bearish so that might be a good time to sell. 

 

QQQ 5_30_2018.PNG

QQQ is still the strongest of the three major indexes.  It is currently running into overhead resistance near 170.  

 

IWM 5_30_2018.PNG

IWM is the strongest index by far, and has made a new all time high today.  I would consider buying in the 158-160 support zone (breakout location) highlighted above.

5/27/2018 Weekly Charts of the Indexes

QQQ Weekly 5_27_2018.PNG

Above is the weekly chart of QQQ.  Notice that QQQ has run into overhead resistance at about 170.  The daily chart has formed a bull flag, which hints that a break above 170 means we run to 178-180 in a couple weeks.  As of 8 PM Mountain Time (10 PM Eastern Time), futures are up quite a bit, so I’m expecting a strong up-day on Tuesday.  

The concerning thing on this weekly chart is the negative RSI divergence.  Notice how we’ve made a higher high in March, but the RSI did not make a new high.  Currently, the RSI is only at about 60, and we are approaching a new high again.  As a bull, I wouldn’t be concerned unless QQQ breaks below 155.  If we break below that, I’ll be mostly looking to short sell 🙂

 

SPY 5_27_2018 Weekly.PNG

The SPY is a bit weaker than the QQQ, but is still holding up nicely.  Bulls want to see a breakout above 280, and bears want to see a weekly close below 260.  My bet is that if SPY drops to 260, we will have a lot of panic selling as I think that support level won’t hold.

 

DIA analysis 5_27_2018 Weekly.PNG

The DIA looks very similar to the SPY.  I think if DIA breaks and closes below 235, we will see a lot of panic selling.  Perhaps we could see a drop to something like 220.  Bulls want to see a weekly close above 253.  I think there’s a better chance we move up and break above 253.  

See you Tuesday after the market closes! 

5/24/2018 Markets recover early morning losses, but close a little lower. ANAB and BRKB look like good low risk buys here.

Fun Fact #54

ADR stands for American Depository Receipt.  


 

Market Stocks 5_24_2018.PNG

I’ve added ANAB and BRKB to my watchlist stocks because I think they are worth looking at or buying right now.  WB is consolidating and I think the next move in either direction will be explosive.  I still favor a move up simply because I believe WB will resume it’s uptrend.  


 

QQQ daily 5_24_2018.PNG

As you can see in the daily chart of QQQ above, the index is still consolidating.  I’m still bullish because dips are aggressively bought up.  

 

ANAB 5_24_2018.PNG

ANAB is in a support zone and a very strong uptrend.  You can buy in the 78-82 zone with a stop loss at 77.  Your profit target is the resistance level near 95.  The Risk Reward is about 5 to 1.  

 

BRKB 5_24_2018.PNG

BRKB is also nearing a support zone at the 200 day moving average.   You can buy between 190-192, with a stop loss near 187 and a target at 200.  The risk reward is slightly over 2 to 1.  

I’ll be looking at some weekly charts this weekend! 

5/22/2018 Markets close a bit lower, MU spikes on Intel deal and 10 billion dollar buyback news. Watch out for Fed meeting tomorrow!

Fun Fact #53

MU announced a buyback along with an Intel deal day.  As a result, MU surged despite the entire market being down!  Read more here


 

Market Stocks 5_22_2018.PNG

Note that the above price changes are for the last 2 days.  I am still bullish.  


 

QQQ 5_22_2018.PNG

I think QQQ has made a bull flag pattern.  This pattern is formed when the price goes up vertically and then consolidates.  I’ve drawn the flag on the chart above.  The target if QQQ breaks out above 170 is the length of the flag pole, which is about 8-10 dollars depending on how you draw the flag.  That means QQQ could reach 178-180 within a few weeks after breaking out over 170.   The only concern is that the move upwards wasn’t on significant volume.  

 

DIA analysis 5_22_2018.PNG

DIA, like QQQ, also looks quite strong.   Since DIA broke out above the resistance level near 247.5, I think there’s a good chance DIA will bounce upwards from the 245-247.5 support zone.  I’ve highlighted that support zone in the chart above.  Also, please note that the volume on down days is significantly lower than on up days, signaling that buyers are still in control of the price action. 

 

SPY 5_22_2018.PNG

The SPY is doing the same thing as the QQQ and DIA.  It is currently taking a break after a strong upwards move.  I think the odds favor a breakout upwards, but if SPY closes below 270, I think we move significantly lower.  

 

BABA 5_22_2018.PNG

Speaking of bull flags, here’s the chart of BABA.  Notice how BABA had a vertical move up on huge volume, and is now consolidating.  The volume has decreased significantly as well which is a great sign.  A break above 200 signals a lot more upside.  The length of the flag pole is 30, so if BABA breaks out above 200, the measured move up would be to a price of 230.  I analyzed the weekly chart of BABA in a previous blog post, and the chart also hints that a break above the 200-205 resistance level signals a lot more upside.  

Thanks for reading, and I will see you Thursday!