Use the 331.87 target shown in the chart to warn of a potentially important top, since another at 382.75 that I’d identified here a week seems far too ambitious with Biden nominally in charge of America. The point ‘A’ low is not as distinctive as we should prefer, but it’s good enough to imply that bulls are unlikely to simply blow past 331.87, even with the help of nervous-Nellie shorts. Another reason I prefer this target is that it closely coincides with one at 13,555 in the E-Mini Nasdaq that has been on our radar since September. Here’s a chart that shows it. We already hold puts in QQQ, but I’ll recommend buying a few more cheap ones when 13,555 is reached. Like the target in QQQ, it looks unlikely to be a pushover. _______ UPDATE (Jan 27, 8:24 p.m. EST): Now wasn’t that refreshing! The Cubes shed nearly 3% of their value today after topping at 330.32 on Monday, a hair below my target. As for the E-Mini Nasdaq, it got sacked for a 4.4% loss after cresting a millimeter (0.6%) above the 13,555 target first drum-rolled here months ago. Let’s see if the selloff snowballs into something frightening enough to wipe the smile off the Reddit/Robinhood crowd’s face. _______ UPDATE (Jan 28, 9:35 p.m.): The 331.87 target remains unsullied by all the nuttiness, but we’ll give it up if the Cubes can close for two consecutive days above it..
QQQ – Nasdaq ETF (Last:319.85)