Lots to cover today so I'm going to try to wrap up some of the more significant recent technical developments in this one update. Starting with the SPY & QQQ, both are experiencing impulsive selling so far today following the recent breakdown & back-test of this bearish rising wedge pattern which helps to validate the recent breakdowns as a significant technical events. My expectation at this time is for at least a ~50% retracement on both, price targets shown on these updated 30-minute charts below, which are preceded by the 2 previously posted 30-minute QQQ & SPY charts: I [...]
I received the following question regarding the TECS / XLK Active Swing Trade: "Randy what are your thoughts on the official TECS trade at this point? If we see that last thrust up in the market next week, that will most likely trigger the stop on TECS as we are quite close to it already. As we’re expecting a move down afterwards, it might make sense to suspend/lower the stop?" to which I replied: Although it’s getting close, I’m going to stick with the original suggested stop of any move below 11.40 on TECS although at most, I might revise that [...]
A recap of today's price action & recent technical developments in the US equity markets (SPY, QQQ & IWM) as well as a few key sectors ETFs such as XLK (technology), XBI & IBB (biotechs), SMH, XSD & SOXX (semiconductors) as well as the volatility indexes ($VIX & $VXN).
Fundamental & technical analysis on a few key sectors including the automakers, biotechnology, semiconductors, technology as well as the volatility indexes. The following stocks & sector ETFs are covered in this order: F, GM, TSLA, TM, XBI, IBB, PBE, SMH, XSD, SOXX, XLK, TECS, $VIX & $VXN.
The following notes & charts outline the entry criteria, price targets, suggested stop & beta-adjusted position sizing for a swing trade on TECS (3x Bearish Technology Sector ETF) and/or XLK (1x non-leveraged Technology sector ETF).