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The Bear Flag is Still Intact on the Q's

November 27, 2007 | Comments: 0
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QQQQ | QID

Despite the big move up in the market today, the bearish set up is still firmly in place on the QQQQ's.

I have initiated a 900 share position in QID in anticipation of further market weakness. I really like the reward to risk on this trade right now. QID has solid support at $40 and little resistance until it reaches the 200 day moving average at $45. This is a solid 4 to 1 reward to risk set up. If I am stopped out at $40, I will consider a reentry at the 50 day moving average at around $38.

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