Mar 08

ProShares UltraShort QQQQ ETF (QID) Should Resume Upleg

by Mike Paulenoff, Thu March 8th, 2007

After this morning's big down-gap open, I figured that my long position would be stopped out (54.60) before the end of the first hour of trading. Here we are 6 hours later, and the ProShares UltraShort QQQ (AMEX: QID) appear to have survived the worst -- at least for now. If the reaction to tomorrow's Employment Report is negative, then my long position could still be stopped out; however, my near- and medium-term work (as distinct from the micro timeframe) argue that after this bout of weakness runs its course in the 55.00-54.00 target zone, I expect another potent upleg that revisits and hurdles 58.00.
Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!