Tech stocks are setting up a potential trade that I want to walk you through. Here is an example of a trade set up one of my favorite indicators has signaled, the chart that helped me spot it, and the steps you can consider supercharging this move for the maximum potential.
QQQ, or the Invesco QQQ Trust, is an exchange-traded fund that trades on the Nasdaq under the symbol QQQ. It is designed to track the Nasdaq ETF stock market index. In studying the QQQ I have found that Fibonacci Exponential Moving Averages (EMA) are extremely effective at providing great trade signals.
Let’s start with a look at what the NASDAQ, the index QQQ tracks, has done recently.
This chart image is courtesy of FINVIZ.com a free website and gives a quick view of each day’s movement.
EMAs work well as they give a greater weight to the most recent prices and provide signals that tie directly to current price moves. Using Fibonnacci EMAs helps provide price targets to build the most effective positions. To find out more about EMAs, click here.
The EMAs on the chart below are represented by the colored lines:
In this example, you see that the EMA’s are headed up but look like they could be turning down with the red candles over the past few weeks. This lets us know that the market could be changing direction. Since we always want to see a confirmation that the signal is correct, we are going to watch for what this week’s candle and the EMA’s do before placing a trade.
QQQ’s Potential Trade
We are holding off on placing a trade until a clear direction happens.
Trading options can be a win, win, win opportunity. Options often offer a smaller overall investment, covering more shares of stock and potential for greater profits.
Our lives should be filled with joy. As many minutes throughout the day as possible, we should be happy. Figure out what you love and do it. Love what you do, and with all your heart give yourself to that love. Enjoy your life and the people in it.
I wish you the very best,
Wendy
Past potential trade update:
Last week we discussed buying QQQ calls. It did not reach the target entry price.
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The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Wendy Kirkland a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk and is not appropriate for everyone. The actual profit results presented here may vary with the actual profit results presented in other Wendy Kirkland publications due to the different strategies and time frames presented in other publications. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, Wendy Kirkland does not make any guarantee or other promise as to any results that may be obtained from using the Services. Wendy Kirkland disclaims any and all liability for any investment or trading loss sustained by a subscriber. You should trade or invest only "risk capital" - money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses.
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