Fri January 26th 2007
Nasdaq DownMove Not the "Real McCoy"by Mike Paulenoff,
www.MPTrader.comAlthough the ProShares UltraShort QQQQ ETF (AMEX: QID) surged to new a recovery high at 54.39 today, the surge was NOT confirmed by my momentum gauge, which is a big warning signal that perhaps the market bears should not (yet) get too excited about camping out on the short side for any extended period. In addition, the pattern carved out off of the Jan 16 low at 49.10 into today's high has a very corrective (counter-trend) look to it, which also warns me that more than likely the upmove in the QID (downmove in the Q's) is not the "real McCoy." For the time being, though, as long as the QID remains above above 53, I will remain somewhat constructive.
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