View for the Upcoming Week

Lets talk about the upcoming week. For the next few days I expect chop but in a downward trend for the QQQ (Nasdaq). And I expect the QQQ to open down and have a 60% chance for a down day:

You can see from the chart above that the MACD indicator is still in a drop position. The red line above has not crossed over the black line, showing more drop is on the way. The RSI indicator, the indicator at the top of the graphic, is still showing a bit of weakness. As for the candlestick charts, the 50 day average does have some weight, but you saw how easily that average was broken last Friday by the dip. I expect the QQQ to be testing that average as things chop downwards, all the while throwing in a token semi up day or two in there as the bulls and bears fight, with the bears winning this upcoming week overall, I expect until Friday of this week. Once again, big insane news trumps this, but if everything is everything, the chart will chug out what it displays above.

Now for the next 2-3 weeks ahead overall: The news remains that the market will continue to drop.

The above chart shows that the RSI as well as the MACD are in positions before the drop, i.e. the car is about to drive over the hill. So everybody, plan any trades you have coming up accordingly.

Also don;'t forget that we are going to be watching DRTX tomorrow. The gig is this: If DRTX is up on moderate price action gains that show people are still trickling in reacting on Fridays news about Phase 3 testing we are going to purchase a put on the stock, as I am going to be betting on it will be going down as people come to their senses that this phase 3 wont bring any money in for the stock for a while. If I see a very big upwards price surge, I will not touch it, as this means one of two things. 1) There is new positive news released about the stock or 2) There is insider activity happening which means we are not privy to the insider information and therefore cannot act.
Also, if the stock is down Monday, we will do nothing as we missed the boat. The boat being very cheap put options. Buy crushed, sell inflated. That's how you roll Warren Buffett style.
Well, it is time for me to get some sleep so I can get up tomorrow and find you guys some more stocks to make you 30% on.

Happy Trading and stay Frosty,
Mark