The Week Ahead for QQQ
A Heated Battle of "Who Sucks Less"
Last week was the first week I’ve done a dedicated post for QQQ 0.00%↑ because I was seeing some minor warning signs that could translate into some weakness across indices for the week. Some IWM 0.00%↑ warning signs were noted in the SPY 0.00%↑ weekly post. Monday and Tuesday looked reasonably strong for the Qs but still continued to struggle with the 10/14 candle range. Wednesday saw a gap down and go that dropped 2.2% from Tuesday’s close before finding the low of week.
Interestingly, the Qs had been somewhat relatively weak and choppy relative to SPY 0.00%↑ prior to this week. DIA 0.00%↑ had been the strongest through last Friday and IWM 0.00%↑ has been strong at least through Wednesday (the 16th). Once Wednesday’s low was found, the Qs flipped to relative strength vs the others. We got long TQQQ 0.00%↑ at Thursday’s low, expecting this strength to carry forward. It certainly did into Friday as we saw a huge gap up that ended up running to a through the previous week high. However, as hedging flows came in strong in the afternoon, evening the Qs couldn’t hold much of their gains. As badly as sellers failed into the lows, Friday buyers failed nearly as badly. We may be forced to rethink our position on QQQ 0.00%↑ next week, which we will discuss in this post.