Chinese internet ETF breakdown on the eve of Alibaba IPO?
Chinese internet ETF CQQQ has doubled the performance of QQQ over the past two years. 
Speaking of doubles, did CQQQ create a short-term double top of late? Time will tell.
A short-term support line is being taken out today by CQQQ, near the time that Alibaba is about to go public. Of late the Nasdaq is near a 52 week high, while their are more new lows than highs. 
No doubt Alibaba will set all kinds of new records as it goes public. Time will tell if the price action of CQQQ is sending an accurate or false message for traders.
See more of our research here Zoom Permalink

Chinese internet ETF breakdown on the eve of Alibaba IPO?

Chinese internet ETF CQQQ has doubled the performance of QQQ over the past two years. 

Speaking of doubles, did CQQQ create a short-term double top of late? Time will tell.

A short-term support line is being taken out today by CQQQ, near the time that Alibaba is about to go public. Of late the Nasdaq is near a 52 week high, while their are more new lows than highs. 

No doubt Alibaba will set all kinds of new records as it goes public. Time will tell if the price action of CQQQ is sending an accurate or false message for traders.

See more of our research here

Amazon, what will traders do if this breaks?
Amazon is down around 20% in value since they introduced the idea of a drone delivery system on 60-minutes around 10 months ago. 
Amazon announced the new “Fire Phone” in June, the stock has traded sideways since that announcement.
The stock is now on a support line that dates back to the lows created in 2009.
From a technical perspective, traders view this support line as very important for where prices of $AMZN could be a few months from now.
Sentiment towards the stock is at rare levels. Are the bulls or bears correct at this time??? Zoom Permalink

Amazon, what will traders do if this breaks?

Amazon is down around 20% in value since they introduced the idea of a drone delivery system on 60-minutes around 10 months ago. 

Amazon announced the new “Fire Phone” in June, the stock has traded sideways since that announcement.

The stock is now on a support line that dates back to the lows created in 2009.

From a technical perspective, traders view this support line as very important for where prices of $AMZN could be a few months from now.

Sentiment towards the stock is at rare levels. Are the bulls or bears correct at this time???

Market leaders, Tesla & Bio-Tech testing key support line-
Tesla and Bio Tech have been great performers over the past 24 months. Earlier this year both of them gave back some of there gains and then started another impressive rally.
Both are making attempts to make strong closes above highs hit 6 months ago, as they both are facing short-term support at this time.
Kind of interesting to see how much these patterns look alike since the first of March this year! How these stocks handle short-term support could have some influence on the future of NDX 100 index. Zoom Permalink

Market leaders, Tesla & Bio-Tech testing key support line-

Tesla and Bio Tech have been great performers over the past 24 months. Earlier this year both of them gave back some of there gains and then started another impressive rally.

Both are making attempts to make strong closes above highs hit 6 months ago, as they both are facing short-term support at this time.

Kind of interesting to see how much these patterns look alike since the first of March this year! How these stocks handle short-term support could have some influence on the future of NDX 100 index.

Junk bond fund repeating 1999 & 2007’s pattern again? 
The Pimco High Yield fund (PHDAX) for a period of time around from 1997 to 1999 & 2005 to 2007 found it difficult to move higher, creating a series of level highs. At the same time it created a series of higher lows. Once old support was tested as resistance and it failed to move higher, large declines in junk bonds and the stock market took place.
Over the past couple of years, the fund may have created a pattern that looks similar to 1999 & 2007, as it seem to have trouble getting above the highs hit in 2007.


The above chart of the B of A/Merrill Lynch high yield adjusted spread highlights that when sharp rallies took place in 2000 & 2007, stocks turned soft.
It might pay to keep a close eye on the Pimco high yield fund and the adjusted spread in the next few weeks, to see if any important messages come from the junk bond complex.
See more of our research here  Zoom Permalink

Junk bond fund repeating 1999 & 2007’s pattern again? 

The Pimco High Yield fund (PHDAX) for a period of time around from 1997 to 1999 & 2005 to 2007 found it difficult to move higher, creating a series of level highs. At the same time it created a series of higher lows. Once old support was tested as resistance and it failed to move higher, large declines in junk bonds and the stock market took place.

Over the past couple of years, the fund may have created a pattern that looks similar to 1999 & 2007, as it seem to have trouble getting above the highs hit in 2007.

highyieldspreadbreakingoutsept13

The above chart of the B of A/Merrill Lynch high yield adjusted spread highlights that when sharp rallies took place in 2000 & 2007, stocks turned soft.

It might pay to keep a close eye on the Pimco high yield fund and the adjusted spread in the next few weeks, to see if any important messages come from the junk bond complex.

See more of our research here