QQQ update

The cubes are going to blow off a bit of steam over the course of the next 1-3 days before it tries a bit of a rally and fails.

During the next several weeks there will be a general theme of the QQQ slowly dipping.
The reason I know that is because globally, there is slowdown happening as evidenced by China and Europe's demand for less fuel. This shows an underlying sickness in the world economy. This is going to show up on the cubes as well. Lets take a look at the weekly chart.

As you can see, there is a situation developing here. The RSI is winding down, as well as the MACD. And looking at both, you can even figure out the timing. Looks like a drop in the beginning of Feburary, more like about Feb 10th. While that is a bit out there in time, lets take a look at what is going to be happening more in the near future:

Well look at that: it looks like we have the beginning of a coiled spring set up starting here...this is generally not good because that means it moves up the timetable of the drop that I foresaw on Feb 10th...possibly by 3 weeks closer. If this is a coiled spring, the QQQ is gonna tighten up and coil up even further over the course of the next week or two as the price range gets narrower and narrower then boom. A coiled spring blows either to the north or the south. This time is gonna be to the south because that is what the weekly QQQ is foretelling.

How to Play This: Do not get into anything long at this time. However, if you want to load up on some puts, or some leap puts, now is the time to do it. Dont let the temporary climbs of the coiled spring freak you out, things will spiral up/down to the explosion point, but in a narrow range.

Tommorrow on Sunday, I will look at some 3 day drop stocks that we can short or put.
Until then,
Mark