Where Is PowerShares QQQ Trust (QQQQ) Headed
I just finished booting up my computer and I sat all set to make the trade.
The trade was a buy of a technology sector corporation. Inside minutes the technology corporation I was looking at was up big on rising volume.
I was in the trade on the long side without delay.
I got up and went to the bathroom and brushed my teeth. When I came back to my trading desk, I practically coughed up the water I was drinking all over my keyboard.
In seconds I was losing 3%, then 5%, then 7%...
If you bought a tech stock today, then the same thing happened to you.
It was the queen of all headfakes and it had my forename in print all over it: easy target!
In this video, I take a glimpse at the technology sector and the vile massacre that occurred today by looking at the stock chart of QQQQ in four different time frames.
On the weekly chart of QQQQ, you had the 8 week MA crossing below the 13 and 21 week MAs but it's not be frightened time. Not until the 13 week joins the 8 week in going below the 21 week MA should we begin to lose sleep. The weekly chart shows that QQQQ is still within a very weak uptrend. The key support level we don't desire broke is $45.
The daily chart of QQQQ appears daunting with that Bearish Engulfing candlestick that took shape on today's chart. Remember that this is only one candlestick. Also you can't only focus on that dive today without as well focusing on the very optimistic gap up open. Also the moving average lines are still widening giving us the bullish alligator mouth opening formation.
The hourly chart of QQQ reveals that the support established on Wednesday, June 16, 2010 held as enormous buying took place right off this $46.30 support line. We would like this support level to hold on the hourly chart. The 8 hour MA line broke beneath both the 34 and 55 hour moving averages but the 34 hour MA is still above the 55 hour MA. We took technical injury today, no doubt. But the hourly chart tells us that we are still within a very weak uptrend on QQQQ.
The 15 minute chart shows that at roughly 11:45 AM Pacific time, massive selling happened as proof from the flight of stairs pattern on the volume as a greater and greater amount of sellers stepped in and fled out of this market. However then something very bullish happened. In the last hour of trading, massive buying took place off the $46.30 support level. In fact, a greater mount of buying occurred in the last hour than in the previous hour. This huge amount of buying saved the tech sector today and kept it in a very weak uptrend rating.
Article Source: FxTradingStock.com
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by: Samantha Parker
Total views: 37
Word Count: 481
Date: Thu, 22 Jul 2010
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