The "Qs" Follow Our Script To A "T"
by Mike Paulenoff
September 12, 2020 • 12:40 PM EDT
On Sep 2, with QQQ trading at 300.01, down nearly 4 points from its pre-market thrust to a new all time high at 304.02, Mike Paulenoff alerted MPTrader members to the potential danger signals lurking within his chart work. He wrote:
"Just in case TSLA and AAPL weakness represent the first shot over the bow ahead of a significant correction in the NDX, my work on QQQ indicates that a break and close under 298.00 will trigger sell signals that project to 280."
Within hours of Mike's warning, the Qs had sliced beneath 298.00, triggering sell signals in his work that pointed to 280.00 next. (See chart below.) The Nasdaq 100 ETF proceeded to roll over into a nasty nosedive on Sep 3 and 4, just ahead of the three-day Labor Day holiday weekend, pressing beneath Mike's initial target of 280 to a Sep 4 low at 271.80.
By Tuesday Sep 8, QQQ reached a lower corrective low at 269.66, nearly 10% beneath Mike's sell signal at 298.00, and 11% beneath its all-time high of 304.02 from Sep 2.
Mike continued to closely follow QQQ and its key consequential components AAPL, TSLA, and AMZN during the remainder of this past week.
On Wednesday Sep 9, with the Qs at 275.31, Mike wrote: "My BIG picture pattern and momentum work argue that the decline from the 9/02 high at 304.02 to last eve's low at 269.66 (-11.3%) has unfinished business on the downside after this recovery bounce runs its course. The closest target zone for the QQQ rally is 276.20/80, with the optimal target zone being 280-283 ahead of another loop down that breaks 269.66 in route to the 250 area."
QQQ followed Mike's script, recovering to 282.20 within his target zone the very next morning before looping down as he anticipated, breaking his 269.66 support en route to a new corrective low at 266.90 on Friday afternoon.
What's in store for the Qs this coming week?
Join Mike's Trading Room and find out!
Mike Paulenoff is the author of 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 7-day Trial!
More Top Calls From Mike
Last Thursday (4/17/25) afternoon, ahead of NFLX (Netflix) post-close earnings report and the three-day Good Friday holiday weekend, we discussed the technical setup and whether or not the NFLX pattern was positioned to react positively to the news : The NFLX setup heading into Earnings later today is favorable for upside continuation above the prior two rally highs at 993.45 (4/15) and 998.70 (3/25), but not to a new ATH above 1064.
Last Thursday afternoon (4/10/25), the commentary below is what I discussed with MPTrader members about my Big Picture technical setup work: Tomorrow is the final session of the week. We get some big bank Earnings and PPI before the open, and more than likely, one or more POTUS televised events that undoubtedly will move markets one way or other. Technically, tomorrow's (Friday) close will be important to my Weekly Chart Work.
At the beginning of last week, fellow members Rayray and GordonGekko asked for my technical setup work on BX (Blackstone Inc). This is what we discussed on the morning of March 25, 2025:My attached Daily Chart shows the November 2024 to mid-March 2025 correction (-32%) followed by the recovery rally from 135.60 to 153.18.
On March 10, 2025, fifteen minutes before the closing bell and Oracle's forthcoming Earnings Report, below was the analysis I posted to the MPTrader Discussion Room about ORCL:"... My preferred scenario indicates a negative reaction to the news that sends ORCL reeling to test important support at 139.50-141.20-- where ORCL MUST reverse to the upside to avert triggering still lower projections into the 118-123 (back the truck up) target window... Last is 149.32"...
Last October 21, 2024, I alerted MPTrader members to a Goldman Sachs upgrade of optical products retailer Warby Parker (WRBY) to Buy from Neutral. Goldman attached an 18.00 target price to the stock. At the time of my post to members, WRBY was trading at 17.55 in reaction to the GS upgrade, up 6% from the prior close, and just 2.5% from Goldman's 12-month target price.
