Nasdaq bubble intact. For now.

A whopping 7% pull back in the QQQ's before rallying right back.

88 worked for the stop run and produced a 3ish% move to the upside back towards the long term broken channel.

The two likely scenarios in my opinion.

........Then I see these kind of divergences and I scratch my head....

QQQ's

In one word: baffled.

However;
When I look back at what I've been writing about; this was expected due to the size of the stops around that 88 level and the channel. Which we just jumped back into today.

Once again though. I always have concerns and I really don't trust this market.

• Gap up over a bollinger band  on the daily bars.
• At the upper band on the weekly bars.
• Fundamentally overvalued
• Structurally questionable
• Central Bank Policy induced.
• No large volume spike on upside

Charts:

We are at/in upper channel; barely. But we are there; albeit on extended circumstances.

QQQ's

Look's like she's not done yet. On the edge of that broken long term channel. If we pop back up into it tomorrow then this gal's gonna run. Nimble it is.

Riddle Me This

2s10s vs SPX

Monitoring Developments

Doing my weekend reading and going through all the different perspectives people have on the precious metals market, not surprising that most arrows are pointing lower. All of which have different reasons; Elliot wave theory, triangle already broke, China slowing down purchases (not if you look at Y/Y and not Q/Q), yada yada yada.

Let's just clear out the noise and keep watching the next two series of charts. (steady Eddy chart on prior post)

I do hate to say this and think this because the short term pain is never enjoyable; but an alternate scenario that would take a little more downside pain could create the kind of spark we need to get the bulls to step their game up and create a big reversal off a 50$ downdraft move from this triangle.

Here's what it might look like...

We still have Steady Eddy on our side; but it's always good to be prepared for Mr. Market to mind **** you.

Monitoring Developments

16 weeks now above the 30 week moving average.

Given the action around Steady Eddy (30 week moving average), I'm positioned for the upward move out of the wedge that has formed over the past few weeks. The next chart shows where commercial and speculative traders are positioned and some notes around option expiry over the past year or so.

Quick update on the Q's