The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
I am always open to questions, comments, or suggestions on how to improve this blog.

Wednesday, September 10, 2008

Bounce? Slide?

Is this chart due for a bounce or downward spiral? QLD- UltraQQQProShares ETF nearing all-time lows since the ETF began in 2006.
The chart for the Nasdaq Composite Index is very similar, of course. If we don't get a bounce here soon, it looks like we could get a blow-off move to the downside. Though one blow-off move could likely trigger a lot of stops into the arena and create a steeper slide. Anyway, the QLD is heavily weighted in Nasdaq100 contracts as well as 11+% in AAPL shares (heavily weighted towards the Hardware sector).
At this point price direction seems like it will be knee-jerk whichever way it takes. Volume has tapered off of the current move down (which doesn't mean it can't skyrocket once extreme levels are hit. Also, the intra-day direction today seemed very indecisive/unconvincing. So...bounce? ...or, trigger all those stop-loss orders at the March lows? Anyway, it's important not to have a directional bias, rather be prepared for what ever direction you're faced with.
Here's the Nasdaq Composite Index daily chart.

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