Figured I’d kill two birds with one stone in this post, sharing both an update to the most recent short-term “active” trade that was posted on QQQ last Thursday (short/bearish trade) as well as a long/bullish trade idea on AAPL. While the two may seem (and are) contradictory, the QQQ trade was posted as an “active trade” off the 5-minute chart & was expected to have already been completed one way or the other (stopped out or preferred price target hit, which it has been). Previous & updated 5-minute charts below.
QQQ-5m-Feb-22nd
QQQ-5m-2-Feb-22nd
QQQ 5m Feb 28th
However, in that trade idea I included two solid arrows showing my preferred price targets and one dashed, lighter colored arrow with a ‘potential’ third & final near-term target for that particular trade on that particular time frame which still has a potential to be hit although it would be prudent to lower stops to protect profits, if still in that particular trade (not the same as the partial position longer-term swing or trend trade on QQQ that was entered on the recent sell signals on the daily time frame over the past few weeks).
Thursday’s short-term trade idea made a backtest of the small bearish rising wedge after the breakdown/sell signal less than ½ of 1% above the entry price & was immediately rejected off the backtest, going on to hit the first price target, followed by unusually long consolidation & multiple tests above that support level. Once T1 (436.47 support) was clearly taken out, QQQ dropped down to hit & reverse off T2 followed by another thrust down today where it is testing that 435ish support level once more. While my conviction on whether or not T2 will clearly be taken out today isn’t super-high, I can say that a break of today’s post-opening low would likely bring QQQ down to that next & final near-term target (the top of last Thursday’s gap).
For those bullish on QQQ and/or the former crowd favorite, AAPL (once again*) offers an objective long entry here off the 180 key support and/or on a breakout above the downtrend line with stops somewhat below. Not that it should matter to anyone but personally, I’m passing on an AAPL long this time (*Apple was last posted & personally taken as an long swing trade off this same exact support level back on Jan 4th, going on to hit the second & final price target & reversing almost immediately afterward to fall back down to this same key support level/entry point again on Feb 2nd, bouncing from there once again as well).
AAPL daily Feb 28th
Depending on what I see this week as the remaining key economic reports roll out, I might take a long in AAPL as an indirect hedge to my starter swing/trend short position on QQQ, assuming I don’t decide to close it before then. I might also decide to short AAPL on a solid breakdown as well.
Either way, all I can say with certainty is that it is objective to go long AAPL at a very well-defined support level while in a larger uptrend with positive divergences on the daily time frame, with the appropriate stops somewhat below should this support level get taken out with conviction.