Another good day on the street. The QQQQ’s took out my resistance at 43.45. It did mill around at 43.40 for a while. After running up, it ran into more pressure. And ont the way down again started to run into conjestion at 43.45. Once you go past a resistance level, it becomes a support level.

Wednesday QQQQ : Support 43.3 & 43.0 | Resistance 43.75 to 44.0

The resistance is a range today. I see strong resistance in that range, not just one number. I am moving support to where yesterday’s congestion cleared.

~squid

The market shows some strength on Monday. The cubes had started out above my resistance of 43, so 43 became the level I looked for support. The market did find support there, and rallied higher , closing at 43.27.

I think we will still see support around the 43 level, and my resistance level has moved up to 43.45 A pretty narrow spread, so look for a breakout on Tuesday. If support is broken at 43 on the downside, we should see more support around 42.75.

In the short term, the QQQQ’s are looking overbought. I still list 44 as a significant level on the upside.

I sold my options near the open. It may have looked like if I had hung on I would have made more. I do think “The first loss is the best loss” and I did the right thing by closing out. I did close out with a profit on the trades.

Tuesday QQQQ : Support 43.0 & 42.75 | Resistance 43.45
Short Term Resistance 44.0

Chart courtesy of StockCharts
~squid

Starting off my first week writing Squid options, I am going to post what I normally do on a weekly basis. I trade QQQQ’s and the first of the week, the first thing I check is how the cubes did the previous week, and the trading range for the next week. I see short term resistance around 43.30 & and support at 42.25. When I say short term, I mean for the next week or so. I do see buying if a breakout above 43.50 in the QQQQ.

On the longer side, we won’t see anything until we pass 44.0, where it would be a good time to take a look at our position.

For Monday, i am looking for a tighter range between 43.0 and 42.55

~squid