Showing posts with label Price Action Post. Show all posts
Showing posts with label Price Action Post. 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.

NFLX Responds To Support & Resistance Principles



Netflix put in a nice sell signal against resistance (including TAOST Magnet Zone) on the 5 minute chart a little while ago.

The principles work...

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.

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.


11 January 2019

Day Trading The ES Friday 11 January 2019

Just when shorts thought it was safe to come back out...


In The News

  • GM +7% after u/g its outlook
  • NFLX +4% after analyst upgrades... the company posts next week
  • GE -2.5% after an analyst cut his price from $10 to $7... Ended unched on the day...
  • Caesars (CZR) -- +9% on news that billionaire investor Carl Icahn is building a stake in the casino company
  • SBUX - down .7% after GS d/g on China concerns
  • Another sign of the times... PVH +7% after news Calvin Klein to close its flagship store in midtown Manhattan. 

How The ES Traded

Pre-Open

TBZ looked set to hold price up as we came into the US cash market open.  We broke through the bottom of the zone, but only a bit...




After 11 AM


My trading room closes at 11am... 



After Close


The arrows show areas where TAOST Power Zones lent a hand.  Use them.




10 January 2019

A Favorite Pattern To Stalk

This is 1 of my favorite patterns top stalk.

It was +4% yesterday, so don't jump right in... but get ready by stalking a good pullback entry.

09 January 2019

Watch This For An Indication It's OK To Buy Again

The Dow Transports Index is often used as a proxy for market strength.
Right now the index structure suggests the worst may not be over just yet.  Watch it closely for a clue as to when it makes sense to wade back into the shark filled market waters.  In my mind the index has to get comfortably (distance and time) above 10,000 before it makes sense to say things may have stabilized.

That could happen tomorrow... But I wouldn't bet on it.

03 January 2019

An Apple A Day? 4 January 2018

$AAPL took it on the chin today following their lowered guidance after the close yesterday.  

I had quite a few emails and texts asking, "What now?"

There's no easy answer to that question... though I will say that price fell to a pretty interesting level today... and held.

Watch this $140 area for real (if temporary) support.  The fact that it's also right at the top of TAOST Low Power Zone [TLPZ] doesn't hurt.

Weekly

AAPL Weekly Chart

Daily
AAPL Daily Chart

23 December 2018

SNAP Update 21 December 2018

In mid November I posted that a short seller was suggesting a purchase of SNAP because it had dropped so much.

I said that the structure suggested price was likely to go lower.

I was right.


The #BearFlag is proving out.

I wouldn't be interested in shorting the stock here as Bear Market rallies tend to be violent... and often extended.

But I wouldn't want to be long unless price does a lot of work and changes direction.

17 December 2018

16 December 2018 -- On Bitcoin

On January 17th 2018 I posted a Bitcoin update to Facebook...

https://www.facebook.com/TheAOST/posts/1869888823061003

Seems it was more accurate than even I imagined.


As it challenges major support here, many people are waiting for the turn... and have been for some time.

I suspect the security has a lot more work to do before anyone can even begin to think it's turning back to the upside.

26 November 2018

Bitcoin 26 November 2018

A couple of Bitcoin charts...
We knew when it broke... it would be a significant break... Price is coming up on support in short order. If that doesn't hold... look out below.
Monthly Chart

Daily Chart



16 November 2018

SNAP 16 November 2018

A notorious short seller thinks it's time to buy #SNAP... because "it's gone about as low as it can go and sentiment is changing..."
Hmmm... That's a terrible reason to buy a stock.

SNAP Weekly


SNAP Daily


If you're a #priceaction trader, you know that price can always go lower (until it hits 0)... and it can always go higher. Your job is to make price prove it's ready to move in your desired direction before you expose yourself to it by taking a position.

08 November 2018

Utility Stock Idea 8 November 2018

8 November 2018 Thursday
Positively structured utility stocks make for good trade candidates in this environment.

DTE Weekly



DTE Daily

01 September 2018

Small Cap Recommendations From TheStreet 31 August 2018

Here are a few small cap stocks the editors at TheStreet are recommending has long term holds.

If it's not clear from the charts and where price is relative to TAOST Magnet Zone, I disagree strongly on all but 1... and that 1 is a maybe.


02 May 2018

Stalk Candidates 2 May 2018

A few complimentary names from my Stalk Candidates list.  Manage your risk by position sizing properly and have at.