Watchful

The website went down and my apologies for this report being released a little late, thank you for your patience! I had so much to cover, so I am going to try to write less and allow the charts to speak for themselves, feel free to ask questions in the comments section if you need my help...I will be available on & off today. To the charts...

QQQ -  Same ole same ole.

QQQ FEB 4

I had been shorting the top ( adding TZA) and  closing half at the lows,  also watching the 50sma. I closed out this position , but may add if we reverse & drop lower again.   It is still unclear which way this will eventually break,  here is why...

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TRADE IDEAS

I have a lot to cover, so lets just do a quick review and on to the charts...

 

SPX - as the consolidation continues it goes from looking weak to looking more bullish

SPX FEB 3  

In prior posts I wrote that...

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Question: Do You Know What This Is Called?

Answer: Frustrating !  Actually its an example of a trading range. Often after a stock or index Price has run higher , you get a sideways consolidation that is called a trading range. They can form as flags, wedges, channels, etc.  It can be a trading opportunity on one hand, buy the lows & sell the top/ flip and short the top ,  ride down to the lows.   If you aren't an active  trader, however,  and you are just waiting for some directional move,  a nice trend to ride?  It can be a little frustrating. Its tough to tell which way it will break, and the chart above actually looks like it may break higher.   The chart below is the end result of the chart above.

DJIA

The reason that I bring this up is because our markets are currently in a consolidation too...

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