Read This Before Monday’s Open Because the Support Is Gone
- Olivia Voz
A week ago people were calling for a Black Monday.
I thought it was too soon.
Largely because the Qs were still inside the box they’d been bouncing around for weeks, and the box had a floor.
So the Qs went nowhere on Monday.
However, yesterday they got destroyed. The Qs broke out the bottom of the box and SMH hit the target I sent you Tuesday.
Friday morning they bounced. But now there’s no more floor.
I don’t want to doom and gloom this, but a bounce like this morning is not what a bottom looks like.
We need one gap down and then a follow-through, which makes me believe is what we see on Monday.
It’s 50/50 right now.
One thing in today’s close moves it, and I’ll share it with you.
Thursday SMH, the semiconductor ETF, hit my extended target.
That’s the spot a measurement says a move should run out of gas, and when you hit it you usually get a relief rally, a bounce, because the move got exhausted. That’s what this morning was.
So as bad as Thursday looked, it has not capitulated yet.
Capitulation is the washout, the day everybody gives up at once, and it usually happens in three. You don’t have relief rallies in capitulation. We need one gap down and then a follow-through.
It’s 50/50 right now…
And I’m not saying that from the sidelines.
I called the Qs bear flag the day it triggered. I sent you the SMH target Tuesday and it hit Thursday. We shorted SMH in The Close and made some bank overnight, and our SPY trade Thursday hit every target on the way down.
Here’s what you take with you.
You can draw flags all over your chart.
A flag is a sharp move, the pole, then a short pause, the flag, and it tells you the move is probably going to keep going. But it is not a bear flag or a bull flag unless it triggers, which means price breaks out of the flag in the direction of the pole. Until then it’s garbage. Doo doo. Literally lines and dots and squiggles on your chart.
The Qs flag triggered October 30. The SMH flag triggered the same day. That’s why both calls worked.
So I’m prepared for a gap down Monday and I’m fine if it doesn’t come. It’s fine. We’re going to be trading it.
Tuesday, Wednesday, Thursday at 9 AM ET I’m running a free open house on Game Plan QQQ.
I go live, you get the trade by 9:20, we execute together at the open. Three days, three trades, on me. Whatever Monday does, you’ll know how I’m trading the Qs Tuesday morning.
Rock On,
Voz
