Hi Shoppers,

The cup and handle in the Invesco QQQ Trust (Ticker: QQQ) has pretty much been played out.

Although it did not reach the exact high of $334, it came pretty close trading a high of $327 on Friday.

Taking a closer look at the candles, it is quite possible QQQ is ready for a pullback:

The candle created on Friday could be a hanging man signaling a change in this uptrend.

A hanging man is found at the top of the uptrend, takes out the previous day’s high, trades lower during the session to create a long lower shadow and then rallies to close near the high.

That sell off that created the long lower shadow has created uncertainty and that is all you need to get the bulls to take their profits and entice the short sellers.

I will be looking for QQQ to open and trade lower tomorrow.

And if it does, I will be a shopper for Proshares Ultrashort QQQ 3x (Ticker: SQQQ) calls.

Of course the SQQQ chart is the mirror image of the QQQ chart so it is sporting an inverted hammer on Friday:

An inverted hammer is found at the bottom of a downtrend and signals a change in that trend.

If QQQ trades lower and SQQQ trades higher, I will be a buyer of the May19 28.50 calls:

I think SQQQ can trade $30 and possibly $31.40.

Trade Review

Bitcoin (Ticker: BTCUSD) has traded down to $25,800 but did create a hammer on Friday, as did Proshares Bitcoin (Ticker: BITO). Will be interesting where it goes from here.

Thanks for Reading … See You Next Tuesday,

Licia Leslie