Invesco QQQ Trust Series 1 (QQQ)

[frenchee]

Swing man,

I loaded up on longs AH @ 40.07.

In addition to the $NAMO chart and IEEE figures, six long attributes include:

1) -DI decreasing after being on an extended run up. A reversal at high -DI levels often precludes a change in short-term momentum.

2) CCI in a presignal buy area as it's oversold. Just need a cross of its 5-day EMA to issue a buy signal.

3) Price closed higher than it opened today suggesting a possible change investor's outlook for QQQQ.

4) Qs downside volume slowed down after being outside its upper Bollinger Band on Friday. As a general rule, when prices are down and volume are declining, the current market trend is getting strong. Why? Long positions being forced to liguidate; downtrend will end as all sellers sell their positions.

5) Chaikin Oscillator turning up from oversold levels.

6) Two days of price action outside of lower Bollinger Band with significant positive divergences with the above indicators as well as Slow Stochastics and Williams %R. This doesn't occur that often and therefore signal a minimum move to mean inside the Bollinger Bands.


The primary negatives are:

1) QQQ trading below its 233-day SMA. Long-term trend could have changed to down.

2) Fast MACD still plunging. I tend to discount this trend-following indicator when the ADX is below 20.

3) Chaikin Money Flow Indicator still plunging with its rate of decline increasing.

4) ADX increasing and approaching 20.

For now, the weight of the evidence points to being long versus short. Nevertheless, I set my intial stop @ 2% below entry if I'm wrong in above analysis.