Weekly Symmetry
The focus time frame right
now is on our daily charts. I have stock after stock hitting a key daily Fibonacci
resistance zone. That plays well with the fact that we are also ramming into
the same kind of resistance levels in the indices. Let’s take a peek at QQQ.
The first chart below is
QQQ Daily. Today we chewed through additional Fibonnacci resistance levels.
However, the zone is still there. Plus, on the Time axis we have time cycles
kicking in, in a major way between the 22nd and 25th of this month for a possible
reversal to the downside.
Today I want to focus on what to do if QQQ doesn’t
respect our time and price parameters and trades right up through our price
resistance zone and keeps going up through our time cycles. Then what? Based
on the second chart below QQQ Weekly, we could see a QQQ trading around 35-40.
That is simply based on measuring the previous four countertrend rallies and
projecting them from the current low.
I believe if our daily Fibonacci parameters
are violated to the upside, then QQQ will trade up to the weekly symmetry zone.
Again the symmetry zone is simply a projection of the point size of previous
rallies from the current low. I’m not going to trade with that weekly play book
until my daily playbook is shredded. For now, I’m actually looking at short
setups based on the daily charts.
Oh, and let’s not forget
the CBI (Child Birth Indicator). Short the market when Landry has a baby and
go long when Hobbs has a baby. So far this indicator is “testing out” very well.
I’ll keep you posted. For now, I think we should encourage abstinence for Mr.
Landry. Perhaps keeping this photo laminated in his pocket would help.
Good night!