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Sold some of my long positions on Tuesday. Market is treacherous right now. Mainly in cash in my trading accounts.

When the markets open strongly down, I look for stocks in my watch-list that are holding up.   There were a number on Monday that showed great relative strength and I nibbled at them. These include OPK, ITCI, AMBA, PANW, and INGN.   If they hold, I will add to my positions. If they fail I will sell them immediately. I also bought a little TQQQ. I must preserve my trading capital. So I do not marry my stocks and separate from each one immediately if it misbehaves. The fact that the market held on Monday in the face of the Greek no-vote is a sign of strength. When the market fails to go down on bad news, it is telegraphing strength. We might see a rally into earnings and then a decline into September/October as the Fed readies to raise rates. IBD notes that the put/call ratio has been holding above 1.0. Extreme bearishness among option traders is a great contrary sign of impending strength. And with an oversold 10.4 daily stochastic of 22.72 in the QQQ (up from 17 on July 2nd) , we are in the area where the QQQ usually rebounds. Hence my purchase of TQQQ, the 3X bullish leveraged ETF for the QQQ.

Almost one half of the Nasdaq 100 stocks have an oversold stochastics and T2108 is quite low at 31.   The QQQ has already bounced its lower BB (see daily chart below) and its stochastics is at 23 .   QQQ usually bounces when its stochastics goes below 20.   Finally, the longer term trend of the QQQ remains firmly up with an RWB pattern (weekly GMMA chart). If the market strengthens, I will commit funds after the long weekend. Earnings will be coming out in mid-July and will propel some stocks higher. Then on to dreaded October……….