Thursday, April 17, 2008

NASDAQ 100, DOW and other Happy Campers

This is truly amazing...end of post

Now, Start of new post - lets use some charts and facts...and charts...

After whatever ER GOOG pulled QQQQ After Hours is trading at about 46, helped by SNDK, "Value Stock MSFT" and some other symbols I have no idea what they stand for... well .. I do, but this is not the point. The point is that:

I will be closing my long calls and long positions tomorrow during the day.
I am insane...
That is a good answer, but not good enough to deny myself a chance to make some Bold Mad Money ( Don't forget - Cramer said about a week ago - the worst is not over - sellselllsellllll)
But here is the reason - THE CHART, uh-huh!
I did not put coments or arrows - but look at the white horizontal priceline, right under Fibonacci 38.2% ( 46.30 ), it goes across the chart showing the area where most hiccups occurred in both directions.
And it is right at $46 - that magic area again - we played before..
I agree that almost a year old resistance does not matter too much, but it still does if you look at January's 2008 selloff, well - look at the volume...I bet there are still a lot of bagholders, pardon me - investors wishing to get the heck out at break even.
If move up will be sustainable to the point of going up to $48, then we'll get ourselves a stagnant range between 46 and 48 for a while.

I don't think it will stop QQQQ from rising at the end, but it will definetelly push it downward ( some ) and present with opportunity to re-open long positions ( If such desire will still be intact after the end of Spring Earnings Period somewhere in Mid May - end of which is sadly famous for marking the highest point for the tech ... until the end of summer)