Q’s At $31? If We Hit This Air Pocket, It’s Possible

  • March 17, 2003
  • Derrick Hobbs

I
admit that I’m an emotional being and have to constantly keep those emotions
under control as I trade. But doggone it, watching this market go up is
comparable to….

Watching a 95 mph fastball from Roger Clemens leave the barrel of MY bat and
travel 400 feet over left center field at Yankee Stadium. 

Or…

Draining a last-second three
pointer over Lattrell Sprewell (I will contain my opinions here) to win the
Conference Title. Let’s just say there is some gesturing that might occur.

Or…

Watching the Indiana Hoosiers win the NCAA Div. I Mens Basketball Championship
in 2003. (Don’t count those Hoosiers
out!)

I had to get that off my chest.
Now we can focus on the task at hand and the fact that even though the last few
days have been impressive, there is a critical price resistance decision for QQQ
to deal with in Fibonacci world. If that price zone can be cleared to the upside,
then we have an Air Pocket with no significant resistance up to the $31 level on
QQQ. Check out the WEEKLY chart below.

There are few items I want to highlight:

  1. Note the previous three major
    rallies in the last couple of years have ranged between 16 and 18 points.
    This rally is at 9 points.

  2. If the resistance zone from
    roughly 26.50 to 28.00 is cleared, then we are likely in for another
    substantial burst to the upside.

  3. This pattern that is unfolding
    on the weekly chart is starting to look like a 3 wave corrective pattern. We
    like to call them “two step patterns” or AB = CD moves. The key to this
    two-step pattern coming to fruition again is the Fibonacci price resistance
    zone that ends at 28.00. Key, key, key decision!

  4. The flipside to the euphoria
    here is that we can NOT clear this price resistance zone and prices begin to
    roll over and the downtrend accelerates.

I don’t know about you but
I’m making plans around this key price decision for short- to intermediate-term
time frame trades.

Monday
Afternoon Quiz:

How
many NCAA tourney games did UCLA win in a row from 1964 to 1974?

The first right answer is worth
one-month subscription to my Stock
& ETF Report. It’s March Madness, Baby!

Derrik
Hobbs