The Nasdaq 100, QQQ closed at $363.38 and we were down 0.14% on the day. This has been a wild ride as expected, As I pointed out at the beginning of this month, August is historically the most illiquid month of the year causing volatility and downward pressure on individual equities and Indices alike. We literally went from overbought on Friday to oversold yesterday which is great for Swing Traders. The day traders are getting whipsawed which is why I prefer not to go out flat every night, we don’t mind holding overnight. Swing trading affords us the luxury of not having to be right every day which is nice because nobody can be right every day, and nobody can be right on every trade. It’s a lot easier to be right when you are willing to hold positions over multiple days and weekends.
So here is the deal. We are in a pretty heavy market, and all the Talking Heads are expecting one stock out of Thousands to move the market and determine where the NASDAQ goes for the rest of the year. The market does not care what anybody thinks, usually the market will do exactly the opposite. For instance NVDA could come out with great earnings and the stock could still get crushed or it can come out with just Ok numbers but say just one amazing thing about their business and if the bulls think they can blow it up and run with it. If they think they can sell it to the media and they think it will go over well and the traders will buy the story then they will say what ever they can get away with. In my opinion we live in a time that Now it’s all about the Narrative and If the “Wall Street Insiders” and Crooks think they can get away with anything and they are right because they evidently do. I am just saying, when we are at a point where the financial media are focusing on just one stock named NVDA We have got a problem especially if they are right. So, with that off my chest…please pay attention to resistance on the Triple Q’s which is at $365.73, $367.25 with critical resistance at $369.61. The bulls have support at $361.85, $360.33, and $357.97.
TSLA hit resistance again up at $240 and traded back down to $233.19 to close the day at $233.19 up 0.83% The bulls have support at $229.57, The $223.25 Zone and critical support comes in at $216.10. Resistance is the $240 Zone, $246 and $25o.76
Have a great night everybody
I will Break down NVDA tomorrow.
G. Allan Collins