Wednesday, June 1st QQQ Preview
What happened?
- Just read yesterday's post in the "What Do I Think" section 🤪.
- But in all seriousness, we opened up with a nice move upward for just a few minutes and then the selling came in and dropped QQQ below 305.
- Once QQQ established support at 305, it started a really nice bullish move for a few hours to 311.
- The Biden JPow meeting turned into a nothing burger with Biden saying he is staying out of the Fed's way. There was some fear that Biden could step in and force a more aggressive Fed, but this clearly was not the case.
- The market did cool off a bit into the close, but not enough to end this nice rally. QQQ closed well above 305 and SPY above 410.
What to Expect?
- Job data is at 10:00am EST
- Bullard is talking at 1pm EST
- Fed Beige Book release is at 2pm EST.
- QT starts, but it is not a major factor imo. $45 billion is nothing to the market in a month. For context, it would take the Fed 200 months to fully get back the amount of money they just put into the market if they stuck with $45 billion. Remember, just because it is a big number to you, doesn't mean it is a big number to the market.
What Do I Think?
- We are still following the March 18th trend upward so I am going to stick with this as a roadmap as long as no new data derails it. This week has no real major landmines from a data standpoint and the stage is set for this bear market rally to continue.
- I am looking at calls near the open, UNLESS we get some new data that surprises the market and turns is bearish.
- I expect a very strong green day tomorrow with a possible 5-7 point move on the $QQQ.
Levels I am Watching (same as yesterday)
- $QQQ - for calls 305 > 309 > 311 > 315
- $QQQ - for puts 300 > 297 > 293
- $QQQ price target for a current rally is still 325
- Reminder Note: This rally could take a few weeks and we have no real major data events on the economic calendar for 2 weeks.
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Bones Tradez
Created By: | Bones |
Created: | Mar 2, 2022 |
Total Followers: | 27 |
Twitter: | @BonesTradez |
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Options Trader - Not Financial Advise