Nasdaq QQQQ Index Drops with Wal-Marts rare sales decline creating concerns for worried investors.
Although the QQQQ Index is hitting all time highs and has a strong uptrend with 5 small bullish rally peaks I believe todays sell on the market was a warning to take profits off the table if you own stock. I feel QQQQ’s will pop higher next morning Nov 28th then continue to sell lower breaking a major trend up. My reasons are selling off in Dec 06 to extract money for taxe purposes. Also a long run up and selling at highs. I’d buy back into QQQQ after it bottoms out and it starts to have a bullish rally again in 2007. I’m going to be buying PUT positions on this QQQQ index as soon as the market and charts show I am correct.
Wal-marts rare sales decline for Nov 06 created a negative push on the market today to make investors with big profits to sell taking them off the table with mixed news on sales. Investors are worried about consumer spending and retail stocks now. I expect the market to either open lower go high then down or open real high and keep following downward tomorrow. If you read the articles it pushes towards “healthy profit taking” which is what I think with a push from Wal-Marts sales reports created a selling effect on the stock market to really sell off hard like it did.
I was also right about the FXI China Index PUTS. I bought CALLS on them today to pop higher and sell out immediately for a friendly profit. I don’t see FXI following a U.S. market downtrend because they are China market related and move slowly with China and are slightly effected, but effected as seen today with the 1-3% drop on stocks.
Now the market could open lower tomorrow, but I feel that’s highly unlikely because of such a big percentage mark sold off today making buyers scream buy tomorrow then sell real fast for a profit. So if the market down pop higher then start to go down you could still get into PUT positions on most stocks.
QQQQ Index strong bull trend with first large red candle signaling a reversal in a reversal selling month: