If you’re a follower/trader of the indices, you know where we stand pricewise: momo pullback mecca. The key now is dissecting the market action occurring to determine if big players are stepping in to buy the dip. What makes the dip in QQQ interesting is its current placement near the top of the brackets we traded mid-May through June. The moving averages I follow are aligned properly and slightly turned up. However I’m not buying aggressive yet, as a knife lower could nullify the entire setup and send the averages back to their stagnant state.
There are two mobile tech plays capturing most by interest. I’m long both. Pandora and Yelp are two entirely different situations, let me explain my sentiment:
Pandora spent a long time balancing out with price ping-ponging between $10 and $11.50. Much coin has been banked playing the bracket. The range tightened up over the last six sessions, and I got big anticipating a significant move away from the consolidation. I knew sub $10 would trigger stops and cascade price lower. We saw just that this morning as the bid was smashed lower (No Rhino). However price has rebounded throughout the day. Unless price gets downright ugly again into the close, I’m giving the position until tomorrow to regain its footing. Much like the initial reaction to a Fed announcement is the fake-out, a tight consolidation can do the same to shake out weak hands and balance the inventory.
Yelp was sold today by Le Doctoure. He was the biggest online pundit in the name. It was a bold trade, and we all tip our hat to his steady market hand. I’m not going to sugar coat being long the name, yet. Today’s order flow in YELP is all sell. But it certainly seems sellers are getting ahead of themselves. As a momo trade, I like YELP as long as it is north of $21.50 on a closing basis. If we see buy flow stepping into the QQQs this afternoon, I may add. Otherwise, I’m looking to add on the next green day. Price is balancing out a bit here at $22.50, but I want to see some rotations higher before I get aggressive.
We’re in long side momo mecca friends. Worldly problems or not, if I see the offer being lifted, heavy bids, and healthy rotations higher, I’m grabbing on for the rip.Comments »