Blog Post: Day 2 of the new $QQQ short term down-trend; it could end on Tuesday as we enter 4th quarter earnings release period; many blue dot signals, see chart of $AMD


I wrote yesterday that 40% of new QQQ short term down-trends end in less than 5 days. I subsequently tweeted on Monday that it looked to me like the current down-trend might end on Tuesday. The market often declines before rising as earnings are released. I sold my small position in SQQQ and bought a little TQQQ. Almost all (91%) of Nasdaq 100 stocks rose on Monday and many tech stocks came to life. My scan for stocks having a blue dot (daily 10.4 oversold stochastic climbing back above 20) identified 79 stocks from my watchlist of stocks recently on IBD/MS lists. Included were well known stocks: CROX, ARM, TWLO, ROKU, DECK, DDOG, ADSK, COST.

Here is an example of a stock with a blue dot on Monday. If I buy one, I place my stop below the low of the bounce. Note the prior blue dot on October 31. Black dots are another oversold bounce signal I follow. To learn how to place dots on a TC2000 chart, see this video published by my late co-instructor, David McCandlish. Note that my parameters for the dots have been slightly modified since this video.


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