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Andy Zaky
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Andy Zaky is a Hedge Fund Manager at Bullish Cross Asset Management, and editor of the Bullish Cross financial newsletter. His main area of knowledge is in global macro economics, fundamental analysis and technical analysis. Andy has about 14 years of investment experience, a strong background... More
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  • QQQQ Price Action Suggests Correction Incoming 0 comments
    Sep 30, 2010 12:52 PM | about stocks: QQQ, DIA, SPY, AAPL, AMZN, NFLX, BBRY, GOOG, INTC, MSFT, HPQ, VXX, S, V, VZ, ATT, GS, XLF, GLD, TLT
    The QQQQ violated its one-month lower trend line today (Thursday, September 30, 2010 at 8:00 a.m. PST) suggesting that it may be on the verge of another correction. For the past 18-months, a violation of the lower trend line has led to at least a correction in the vast majority of cases and a bigger pull-back in the other cases. Yet, how far this correction can actually go in light of the 10 hefty POMO injections by the fed since August is anyone's guess. What we do know is that the last 3 times the fed initiated 9 POMO injections, the market was up 10% over the next 3-month period.

    So while we may be in for a correction, I don't think this correction will be that big. We'll probably bottom out near the 50% retracement of the September rally in equities. Tread carefully right here. Bulls now have to place their hopes on the employment report and the bears need at least one more day of confirmation.

     


    Disclosure: Short QQQQ
    Stocks: QQQ, DIA, SPY, AAPL, AMZN, NFLX, BBRY, GOOG, INTC, MSFT, HPQ, VXX, S, V, VZ, ATT, GS, XLF, GLD, TLT
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