| Good Evening, I hope everyone enjoyed their weekend. The QQQ went from overbought to oversold really quick recently. If you look at the daily chart of the QQQ below or SPY you’ll see, we started trading below the lower Bollinger Band late last week and we closed out all of our short positions Friday morning before the bounce as I mentioned in real time on Twitter except for TSLA and some small put positions that we left on. They are long term puts and we have triple digit gains very quickly, so our in house Options expert Stanley Passman told our Money Magicians Options Players Club to lower GTC buy stop limits to close, and there’s a good chance we take profits on those tomorrow and on the one common stock we are still short which is TSLA. The QQQ looks to be oversold and the fact we now have the Money Magicians members up 132.25% on the year, we just sold off roughly 10% on The NDX 100 in a very short time frame and most importantly, as I pointed out to our private members on Thursday night, there was a good chance we bounce because, all of a sudden everyone turned bearish at the same time. The You Tube Boobs, and all newsletter Gurus got bearish overnight and when Jim Cramer changes his mind you know he’s going to be wrong. The guy had one good call on NVDA and told people to sell over 2 months ago, saying the next 50 points would be down. The guy always finds a way to lose you Money even if he has a pick like NVDA. Even a broken clock is right twice a day. I mentioned on Thursday night, that the market loves to hurt the most people at once so this was a perfect time for a bounce,…right when there were no short-term bulls in sight. The Triple Q’s were down 0.13% on Friday to close at 358.13 after bouncing off support as expected, short term we could get a bounce from oversold so watch these key levels. The Bulls have support on QQQ at 355.90, 354.97 and if we close below 353.79, we will start to see capitulation. Resistance will come in at roughly 360.12, 362.12 and critical resistance 364.50-356.50 zone. Always remember the Support and Resistance levels are based on closing prices. So, for example, if we were to trade through critical resistance intraday on any day, do not take that as a signal to go long or cover shorts unless we close above that critical resistance level because we can trade through critical resistance intraday but close at support. Stay nimble, watch these key levels and listen to what the chart and price action are saying because in the end that’s all that matters. I hope everyone has a great trading day tomorrow. Cheers, G. Allan Collins www.Themoneymagicians.com |
Stay Nimble And Listen To Price Action
August 20, 2023
