Focusing on the P’s and QQQ’s
- Posted by Greg Harmon
- on June 27th, 2014
The story of the markets over the last 6 months on the TV has been one of an impending pullback, and volatility that is so low that it just has to rise. The reality of the markets from looking at the actual price record that has unfolded is that there has been no increase in volatility. In fact it has continued to fall. And no pullback in the markets, they continue to inch higher in a rotational fashion. Fear not though, or actually fear more, according to those same pundits. How can this go on for much longer. It has to change.
Well it might. But in the meantime look at what is actually happening. Because the record of those predicting what will happen has sucked. What I am noticing is that in the most recent round of slow rotation that the $QQQ’s may be the next round winner. Take a look at the chart below.
The QQQ’s went through a period of consolidation from late April into May before a run higher. They now have been consolidating again since early June and just starting to peek over the top of that range. If it sees the same move again higher then you could see them at 98 in two weeks time.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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