Hi Shoppers,
We are definitely in a bull market.
The Nasdaq closed at an all-time high this week. The Iran ceasefire got extended, earnings season is cooking, and tech just took the baton back after a rough start to the year. This is what a real breakout looks like. Write it down.
I really like the Invesco QQQ Trust (QQQ) higher into my next channel (the parallel lines I draw on a chart that show where a stock should find buyers on the bottom and sellers on the top):
That gives it an 80 percent chance of trading to the top of that channel: $684.74.
Price action confirms it. RSI and MACD (two momentum indicators that measure whether a stock is gaining or losing steam) are both moving bullish, and we cleared the prior highs on volume. That is a textbook setup. One to watch.
The Cheaper Way to Trade It
Take a look at the ProShares UltraPro QQQ (TQQQ) to trade the QQQ. It trades at $62, which makes the options much cheaper than buying QQQ calls outright.
Just remember: TQQQ moves three times as hard in both directions. If QQQ drops one percent, TQQQ drops three. Size smaller than you would on the QQQ itself.
The close is always more important than intraday. So watch how QQQ closes this week before you size up. We just need to catch two, three dollars on a move like this.
Why the Bulls Have the Edge
The broad market has earnings on its side right now. The five biggest names in the S&P 500 make up about a quarter of the index, and their Q1 numbers are expected to jump big from a year ago. When big tech delivers, the QQQ leads. When it disappoints, the QQQ leads the other way.
That is why this channel matters. It gives us a clean level to work against. If we hold it, we ride to $684.74. If we break it, we know the bull case is on pause, and we step aside.
Good to have on the watch list.
Let me tell you about Hans and his live event this week!
He is calling it the Great Income Reset and he has new rules for your financial future.
You will learn how the markets have changed and how we are in a new era of investing.
Hans is going to lead the way on how to navigate these new markets and make money.
Everyone is invited to his three day event beginning Tuesday.
Check out his agenda here and I will see you there!
Thank You For Reading … See You Next Tuesday,
Licia Leslie