The value of these charts is clear to me. I trade long when the stock/index is in a daily RWB up-trend. I have sold weekly covered calls on GLD.
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$QQQ bounces down off of resistance; 15th day of QQQ short term down-trend; calls on $SQQQ
The QQQ failed to close above resistance levels (30 and 50 day averages) on Thursday. With the pre-market futures down, most probable short term direction is down. Thursday was 15th day of QQQ short term down-trend. I hold some call options on SQQQ in my trading account.
14th day of $QQQ short term down-trend but QQQ is showing some resilience
In spite of the short term down-trend, the QQQ has now closed above all 12 daily averages in my RWB chart (not shown). This weekly chart shows that QQQ is holding above its 30 week average (red line, Stage II) and is just below its 10 week average (purple dotted line). A close above this average (189.41) would be a significant show of technical strength. With the QQQ and SPY still in a Stage II up-trend, I remain invested in my long term pension mutual funds, but not in my shorter term trading accounts.
