Showing posts with label Chart Don't Lie. Show all posts
Showing posts with label Chart Don't Lie. Show all posts

03 August 2026

How To Trade The QQQ Bounce - 3 August 2026

 

QQQ's Range Problem

Look at the weekly chart first. That's the whole story before we get into the weeds.

From the April low, QQQ ripped from roughly 580 to 741 without so much as a decent excuse to pull back. Straight up, into the TAOST Weekly EMA Channel from underneath, bouncing off it like it owed the bulls money. That's a market that forgot how to say no.

Now it's saying no.

Since the June/July top, QQQ has been grinding lower in a clean descending staircase - lower highs, lower highs, lower highs - right into a zone that should feel very familiar if you've been trading this name for more than five minutes. Not a single price point. A range. The yellow box on the daily chart, with 700 sitting inside it like a mile marker, not the final destination.

A Range With a Résumé


That zone isn't some rectangle I drew because it looked pretty. It's done three jobs already this year.

First it was resistance, back when the bulls hadn't earned their way through it. Then, once QQQ broke through, it flipped and became support - the floor that held the entire spring rally together. Now, after the recent slide, it's sitting there as resistance again, getting tested from below on this bounce.

Same zone, third costume change. Markets recycle their scenery constantly and traders keep acting shocked every time the set looks familiar - especially the ones who insist on trading a single print instead of the band of price around it.

The question isn't whether this range matters. It obviously does - price keeps coming back to argue about it. The question is whether this bounce off the weekly EMA channel has enough in the tank to finally break the descending trendline and reclaim the zone as support again, or whether this is just a relief rally inside a bigger topping pattern, doomed to get sold right back into the same ceiling.

What the Momentum Says


Check the histogram on the daily chart. It bottomed out during the slide, and it's been climbing since - the red bars are shrinking, not growing, right into this push at the range. That's momentum actually backing the move, not just price limping higher on fumes.

That matters. A bounce with rising momentum behind it is a different animal than a dead-cat pop on thin volume. It doesn't guarantee the range breaks, but it means the buyers pressing into resistance right now aren't doing it on empty.

The Setup, Without the Hopium

This is a legitimate bounce off a legitimate structural level - the weekly EMA channel didn't just hold by accident, and QQQ has respected that zone all year. That's real. But "real bounce" and "trend reversal" are two different sentences, and the market hasn't written the second one yet.

If QQQ clears the range with any conviction and holds above it, the descending trendline gets broken and this stops being a bounce and starts being something else. If it fails here - again - then the zone keeps its job as resistance, the staircase keeps stepping down, and everyone who bought the bounce gets a lesson in why "buying support" only works until it doesn't.

Nobody needs a prediction here. They need a range, a plan for both sides of it, and the discipline not to fall in love with either outcome before the market decides.

That range doesn't care what you think it should do. It never has.

30 January 2019

AT&T [$T] 30 January 2019


Always beware of a stock that's down when the overall market is up substantially.  

It's often a telltale sign.  

Both the S&P500 and the DJIA were both up more than 1.5% while $T was down more than 4%.

The chart shows a long term bullish price pattern that failed.  It's not likely to repair itself.

18 January 2019

AAPL Update As of 18 January 2019

AAPL reports on 29 January 2019.

Things don't look good for the stock right now.

The broader stock market has been on a tear since Christmas, but Apple's stock can barely get up off the mat.  $140 and TAOST Low Power Zone look like good support, but nothing can hold up a market determined to collapse.


One of my favorite trading strategies historically was to buy stocks that went up when the overall market went down.  It stands to reason that 1 should sell stocks that can't go up alongside the broader market... especially when the stock is supposed to be a market leader.

I say all that to say that it appears to me that Apple is in trouble.

Only the future will tell.

16 January 2019

SPX, DJIA & GS Update - 16 January 2019

S&P 500




DJIA

It's not quite time to go all "horns up" folks.

To be sure, the bounce has been "strong like bull."  But, as the charts above show, structurally, the broader stock indices aren't out of the woods just yet.

Both the SPX and the DJIA are only just challenging TAOST Magnet Zone™ (TMZ) from below.  Price is already stretched to the upside, so beware of getting long here.  In fact, don't be surprised if price rolls over and traces out lower prices... in fairly short order.

GS

The Goldman Sachs daily chart shows that today's 10% move higher only pushed price toward significant resistance above in TMZ and a separate long running resistance zone.

The selloff may indeed be over... but make sure price validates such a thought by closing above these areas of resistance.

15 January 2019

Big Companies Reporting Tuesday 14 January 2019 -- JPM, WFC, DAL and UAL

JPM -- JP Morgan has work to do to get change from its negative structure on the daily chart.




WFC -- The red horizontal line was support... and is now resistance.



DAL -- Like many other large caps (including other airlines) Delta Air took a steep nosedive and is likely to have a hard time moving back to the upside.



UAL -- United Continental looks like it has an important support test coming up.

14 January 2019

What Does The C Chart Say After Today's Report

Citigroup reported before the market's open this morning and rose a bit over 4% over the course of the day.  While many market commentators breathed a sigh of relief, pay attention to the $60 area... It should be pretty good resistance.


09 January 2019

TAOST Power Zones Do Their Job


TAOST Intraday Power Zones worked at points 1, 2 and 3 today.  That's not an unusual occurence, but I thought I'd mention it here today.

If you have discipline and patience [TAOST EC], you can use TAOST Power Zones to make money intraday.

Simple.

23 December 2018

Performance Revisit - The Street Small Caps 31 August 2018

Remember that list of small cap ideas TheStreet published as good long ideas back in August?

Well here's an update...

LGIH -- This was the 1 name that looked like it had a real chance given it was bouncing out of the top of TMZ... Ah, but no.  Incidentally, TMZ is now resistance.




BZH -- This stock had gotten slammed about 6 weeks prior to its publication as a small cap idea by TheStreet.  It was teetering along the bottom of TMZ and after a 1 week Shooting Star style candle, it fell apart.



PBH -- This stock never had a chance... It was below TMZ in August and that never changed...



GPOR -- Price has been held in check to the downside by the down trend line for quite some time.



COG -- This stock also held below TMZ after being turned back in early 2018.



Remember, like "Ball Don't Lie," "Chart Don't Lie..."