2 Reasons I Am Long The QQQ’s
- Posted by Greg Harmon
- on March 14th, 2013
Technical Analysis (TA) can be tedious work, pouring over data or charts or both. And if you practice with more than one type of TA double or triple your workload. Ugh. Until you see multiple methods leading to the same conclusion and you start to smell money. That is the current case in the Powershares QQQ, $QQQ, recently. The chart below shows that from June last year it is in the final stretches of completing an AB=CD pattern with a target at 71.85. This should have kept you
long the QQQ’s and buying dips at year end and in late February. But the action of the last 2 weeks has done a lot to not only reaffirm the bullish view but reinforce the target area. The arrows show that the rise to the current consolidation at 69 give a target on the Measured Move to 72.06, just above the AB=CD target. Isn’t great when two different methodologies come to the same conclusion. I am currently long April/May 71 Call Calendars to take advantage of this. How would you play this chart?
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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