Friday, April 5, 2013
Exited QQQ Bullish Diagonal Spread
After bullish diagonal entry on QQQ about 1 month ago, QQQ finally broke down below 50DMA and up trending line, leading market to a potential down turn with higher volume.
Considering other market index (SPX & RUT) behaviour, I decided to cut a minor loss on QQQ. I was contemplating for an exit yesterday at a similar time to end it up even, but I felt I need one more high volume sell-off on the market to enter a bearish outlook.
Today, if market ends up in higher volume decline, I will change my market outlook to near term bearish.
QQQ was not a leader in the last few month. It just happened to break out when I shifted to bullish outlook. In review, I should have evaluated its leadership using a performance chart like I did before. A lesson is learned for looking for market leading index.
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