The Cubes have fallen hard this month, but we shouldn’t doubt that portfolio managers, being in full control of this tech-salted vehicle, let it happen in order to pick up some bargains. That doesn’t necessarily mean it’s going to D=355.05, although the gap through p=326.27 (see inset) on April 5 lends weight to that prospect. If so, it would complete a bull cycle begun in November — a fitting end to a remarkable bull run. It’s worth noting that the selloff of the last two weeks would have stopped out a ‘mechanical’ buy at the red line. We don’t often do mechanical entries at p, but if we had, our acquisition at p=326.26 would have come a cropper at 316.68, a mechanical stop-loss 68 cents above the subsequent low. I have inferred strength rather than weakness from this, since QQQ was manifestly unable to fall to the green line (x=311.87), where entry would have been more attractive. ______ UPDATE (May 19, 11:02 a.m. ET): DaBoyz still seem to have pretty good control of this barf bag, since it hasn’t even taken out any important lows on the hourly chart in today’s selloff of all else. My hunch is that it will, and sooner rather than later. _______ UPDATE (May 21): The barf bag provided precious little relief for bears last week as it remained in the grip of Wall Street’s awesome ass-bandits. A pullback to the green line (x=311.87) would trigger a ‘mechanical’ buy (stop 297.47), but I would not recommend holding out for any more than p=326.27 if you should catch a lift. _______ UPDATE (May 25, 12:28 a.m.): No such luck. The Cubes have lurched higher on short-covering without having gotten within four points of the green line. Now they appear bound for a minimum 347.26 (60-min, A=311.54 on 3/30.
QQQ – Nasdaq ETF (Last:332.53)
