Friday, May 8, 2009

QQQQ update

This hourly chart of the NASDAQ...

Click for larger image, browser back

...shows that the NASDAQ remains below its trend line, but is still outpacing the broad market index. (SPY) Definitely something to watch! Once they cross, I expect an exciting race to a new bottom will be on. I already have a small position in QID which I'll beef up when this thing gets more steam. Further, I'm watching my four favorite bear ETF's for signs of an up-trend... I'll let you know.

I just can't see how all this political news is bullish over the long term. (help me?) Further, with the price of energy on the rise, business fundamentals and expendable income will decrease.
Its a mixed bag though. Financial institutions are still undercapitalized (bearish) but "we the people" are going to inject more capital as needed (bullish). This will have a long term effect on our debt (bearish). When financials are healthy, industry and families will be able to satisfy their banking needs (bullish). Whew! I am not smart enough to get a read on that mess. Methinks few are. Therefore, the resulting fear and uncertainty may drive the markets down.

Which reminds me: With my ERX investment up 10%, I locked in the profit this AM... will re-buy later.


The chart above was created at

Someday, I hope to interview the web site owners and publish an article for the newsletter.

FreeStockCharts requires an install of a Microsoft add-on called Silverlight which is a hassle. I hate to add more stuff into my PC for fear that overall response time will be reduced, mal-ware risk will be increased. Once installed though, I am happy to have access to these charting features.


Oops! I just scrolled in to a tighter timeframe (by simply rotating the mouse wheel) and see that the Q's are significantly below the SPY now. Happy trading!

Update: My QID trade stopped out at a loss so I bought a large position in FAS. I'll sell most of it later today and hold some for future gains. At lease for the moment, the market has cautiously picked a bullish direction.

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