Buy at Support - Sell at Resistance

QQQQ - Tuesday's Analysis (06/05/07)


The price of the QQQQ closed at 47.58 on Tuesday, even from Monday and up 0.77 from last Tuesday's price of 46.81. Since the price of the QQQQ rose from last Tuesday but was not confirmed by today's action, it remained neutral as compared to last Tuesday's neutral status.

The short-term trend of the QQQQ, which is determined by its week-to-week direction, is up.

The best trading strategy in an up trend is to buy when prices pull back to areas of Support, especially if prices pull back to areas of "Gathering Support".

Tuesday's 5-Minute Chart shows the QQQQ falling to Gathering Support between $47.09 and $47.19. After printing a low of $47.14, Support was found and the QQQQ rose $0.44 to a subsequent high of $47.58: 5-Minute Chart

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button.
 
QQQQ - Wednesday's Analysis (06/06/07)

ANALYSIS: The price of the QQQQ closed at 47.07 on Wednesday, down 0.51 from Tuesday
and down 0.12 from last Wednesday's price of 47.19. Since the price of the QQQQ fell from
last Wednesday and was confirmed by today's action, it turned neutral as compared to last
Wednesday's bullish status.

The short-term trend of the QQQQ, which is determined by its week-to-week direction,
is down: Public Charts

The best trading strategy in a Down Trend is to sell when prices rally to areas of Resistance,
especially if prices rally to areas of Gathering Resistance.

[FONT=Arial, Helvetica, sans-serif]On Thursday...[/FONT]

[FONT=Arial, Helvetica, sans-serif]Gathering Resistance stands between $__.__ and $__.__[/FONT]

[FONT=Arial, Helvetica, sans-serif]Gathering Support stands between $__.__ and $ __.__[/FONT]

Each day's area of Gathering Support and Gathering Resistance is calculated
the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's
'Paste from Excel' Button.
 
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QQQQ, DIA and SPY - Thursday's Analysis (06/07/07)

QQQQ ANALYSIS: The price of the QQQQ closed at 46.34 on Thursday, down 0.73 from Wednesday and down 1.07 from last Thursday's price of 47.41. Since the price of the QQQQ fell from last Thursday and was confirmed by today's action, it turned bearish as compared to last Thursday's neutral status.

The short-term trend of the QQQQ, which is determined by its week-to-week direction, is down: QQQQ Chart

The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.

Thursday's 5-Minute Chart shows a principle of Support and Resistance in action. The principle states, "Support when violated by a falling price, becomes Resistance". The QQQQ found Support upon first approach to Gathering Support between $46.81 and $46.86. After Gathering Support failed, however, it was transformed by its failure into an area of Gathering Resistance and served as such for the remainder of the day: 5-Minute Chart

Gathering Resistance stands between $__.__ and $__.__

[FONT=Arial, Helvetica, sans-serif]Gathering Support stands between $__.__ and $__.__[/FONT]

*********** DIA and SPY Analysis ***********

DIA ANALYSIS: The price of the DIA closed at 132.53 on Thursday, down 1.96 from Wednesday and down 3.76 from last Thursday's price of 136.29. Since the price of the DIA fell from last Thursday and was confirmed by today's action, it turned neutral as compared to last Thursday's bullish status.

The short-term trend of the DIA, which is determined by its week-to-week direction, is down: DIA Chart

The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.

Gathering Resistance stands between $___.__ and $___.__

[FONT=Arial, Helvetica, sans-serif]Gathering Support stands between $___.__ and $___.__[/FONT]

SPY ANALYSIS: The price of the SPY closed at 149.10 on Thursday, down 2.74 from Wednesday and down 4.22 from last Thursday's price of 153.32. Since the price of the SPY fell from last Thursday and was confirmed by today's action, it turned bearish as compared to last Thursday's neutral status.

The short-term trend of the SPY, which is determined by its week-to-week direction, is down: SPY Chart

The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.

Gathering Resistance stands between $___.__and $___.__

[FONT=Arial, Helvetica, sans-serif]Gathering Support stands between $___.__ and $___.__[/FONT]
 
QQQQ, DIA and SPY - Tuesday's Analysis (06/12/07)

QQQQ ANALYSIS: The price of the QQQQ closed at 46.54 on Tuesday, down 0.28 from Monday and down 1.04 from last Tuesday's price of 47.58. Since the price of the QQQQ fell from last Tuesday and was confirmed by today's action, it turned bearish as compared to last Tuesday's neutral status.

The short-term trend of the QQQQ, which is determined by its week-to-week direction, is down:QQQQ Chart

The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.

Tuesday's 5-Minute Chart shows a volatile day in which the QQQQ established a lower high compared to Monday's high and then closed near the day's low: 5-Minute Chart

On Wednesday, the Economic Report that is most likely to influence the markets is the 2:00pm Beige Book Report (see below).

In addition, if the customary relationship between rising interest rates and the stock market kicks in, it should begin to weigh heavily on the QQQQ. Interest rates rose to a 5-year high on Wednesday: Yield of the 10-Year Treasury Note

Gathering Resistance stands between $__.__ and $__.__

Gathering Support stands between $__.__ and $__.__

[FONT=Arial, Helvetica, sans-serif]Economic Reports:[/FONT]

8:30am - Retail Sales Report shows whether or not consumers, who represent two-thirds of the US economy, are doing their part.

10:30am - Petroleum Status Report

2:00pm - Beige Book. The Beige Book is published by the Fed and is scaned for hints on what the Fed will say about economic growth, inflation and interest rates at its next meeting two weeks from now.

*********** DIA and SPY Analysis ***********


DIA ANALYSIS: The price of the DIA closed at 132.92 on Tuesday, down 1.32 from Monday and down 3.06 from last Tuesday's price of 135.98. Since the price of the DIA fell from last Tuesday and was confirmed by today's action, it turned bearish as compared to last Tuesday's neutral status.

The short-term trend of the DIA, which is determined by its week-to-week direction, is down: DIA Chart


The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.


Gathering Resistance stands between 134.93 and 134.97

Gathering Support stands between 132.55 and 132.75

SPY ANALYSIS: The price of the SPY closed at 149.65 on Tuesday, down 1.65 from Monday and down 3.84 from last Tuesday's price of 153.49. Since the price of the SPY fell from last Tuesday and was confirmed by today's action, it turned bearish as compared to last Tuesday's neutral status.

The short-term trend of the SPY, which is determined by its week-to-week direction, is down: SPY Chart

The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.


Gathering Resistance stands between $__.__ and QQQQ ANALYSIS: The price of the QQQQ closed at 46.54 on Tuesday, down 0.28 from Monday and down 1.04 from last Tuesday's price of 47.58. Since the price of the QQQQ fell from last Tuesday and was confirmed by today's action, it turned bearish as compared to last Tuesday's neutral status.

The short-term trend of the QQQQ, which is determined by its week-to-week direction, is down:QQQQ Chart

The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.

Tuesday's 5-Minute Chart shows a volatile day in which the QQQQ established a lower high compared to Monday's high and then closed near the day's low: 5-Minute Chart

On Wednesday, the Economic Report that is most likely to influence the markets is the 2:00pm Beige Book Report (see below).

In addition, if the customary relationship between rising interest rates and the stock market kicks in, it should begin to weigh heavily on the QQQQ. Interest rates rose to a 5-year high on Wednesday: Yield of the 10-Year Treasury Note

Gathering Resistance stands between $__.__ and $__.__

Gathering Support stands between $__.__ and $__.__

[FONT=Arial, Helvetica, sans-serif]Economic Reports:[/FONT]

8:30am - Retail Sales Report shows whether or not consumers, who represent two-thirds of the US economy, are doing their part.

10:30am - Petroleum Status Report

2:00pm - Beige Book. The Beige Book is published by the Fed and is scaned for hints on what the Fed will say about economic growth, inflation and interest rates at its next meeting two weeks from now.

*********** DIA and SPY Analysis ***********


DIA ANALYSIS: The price of the DIA closed at 132.92 on Tuesday, down 1.32 from Monday and down 3.06 from last Tuesday's price of 135.98. Since the price of the DIA fell from last Tuesday and was confirmed by today's action, it turned bearish as compared to last Tuesday's neutral status.

The short-term trend of the DIA, which is determined by its week-to-week direction, is down: DIA Chart


The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.



Gathering Resistance stands between $__.__ and $__.__

Gathering Support stands between $__.__ and $__.__

SPY ANALYSIS: The price of the SPY closed at 149.65 on Tuesday, down 1.65 from Monday and down 3.84 from last Tuesday's price of 153.49. Since the price of the SPY fell from last Tuesday and was confirmed by today's action, it turned bearish as compared to last Tuesday's neutral status.

The short-term trend of the SPY, which is determined by its week-to-week direction, is down: SPY Chart

The best trading strategy in a down trend is to sell when prices rally to areas of Resistance, especially if prices rally to areas of Gathering Resistance.


Gathering Resistance stands between $__.__ and $__.__

Gathering Support stands between $__.__ and $__.__


Gathering Support stands between 149.36 and 149.4
 
QQQQ Analysis as of Thursday, June 14th

QQQQ ANALYSIS: The price of the QQQQ closed at 47.36 on Thursday, up 0.31 from Wednesday and up 1.02 from last Thursday's price of 46.34. Since the price of the QQQQ rose from last Thursday and was confirmed by today's action, it turned neutral as compared to last Thursday's bearish status.

The short-term trend of the QQQQ, which is determined by its week-to-week direction, is up:QQQQ Chart

The best trading strategy in an up trend is to buy when prices pull back to areas of Support, especially if prices pull back to areas of Gathering Support.

Thursday's 5-Minute Chart shows the QQQQ continuing Wednesday's rally based on the 8:30am PPI Report that showed inflation remains tame: 5-Minute Chart

On Friday, the QQQQ will focus on the 8:30am CPI Report (see below).

[FONT=Arial, Helvetica, sans-serif]Gathering Resistance stands between $__.__ and $__.__[/FONT]

[FONT=Arial, Helvetica, sans-serif]Gathering Support stands between $__.__ and $ __.__[/FONT]


[FONT=Arial, Helvetica, sans-serif]Economic Reports:[/FONT]

8:30am - Consumer Price Index (CPI). The CPI, like its relative, the PPI, are closely watched by the markets. The following link illustrates why: PPI-CPI

The expected number for the PPI is +.06 and +.02 (minus food and energy)

10:00am - Consumer Sentiment Report. This report is a way to gauge the current attitude of the consumer who represents two-thirds of the US economy.
 
Cpi

The CPI, like its relative, the PPI, are closely watched by the markets.

The following link illustrates why: PPI-CPI
 
QQQQ - Tuesday's 5-Minute Chart...

Consistently Successful Investors buy stocks at areas of Gathering Support and sell them at areas of Gathering Resistance:

Tuesday's 5-Minute Chart shows the QQQQ bouncing from Gathering Support to Gathering Resistance:

Chart5Min808Qa.PNG
 
QQQQ - Wednesday's 5-Minute Chart...

Wednesday's 5-Minute Chart shows the QQQQ pulling back
from Gathering Resistance on heavy volume: 5-Minute Chart
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QQQQ - Monday's area of 'Gathering Support'

Monday's 5-Minute Chart shows the QQQQ finding Support and a bounce at Gathering Support between $46.81 and $46.85 as identified in the analysis that applied to Monday's trade (see previous post):

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

Chart5Min810Qa.PNG
 
Buy and Sell Alerts (Slide Show)

Consistently successful traders buy at areas of Gathering Support and
sell at areas of Gathering Resistance as the following slide show illustrates: SlideShow

Quick Reference to charts of the most popularly traded
Stocks, ETFs, Indexes and Funds: Public Charts
 
Anallysis in preparation for Wednesday, July 11th...

Analysis for individual stocks is updated nightly in preparation for the next day's trade.

The following analysis applies to Wednesday's trade: Analysis

Click on the "Slide Show" link for a demonstration of Gathering Support (Buy Alerts) and Gathering Resistance (Sell Alerts).
 
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