The Nasdaq (QQQ) Continues To Follow Through

The Nasdaq (QQQ) continued to follow through the last two days holding the pivot point we have been watching. We need the market to create a new high which I marked with a yellow line in the chart. We need a new high to ensure that the current bullish trend is still intact. If the market were to fail to create a new high then it would be at risk for a possible sell-off.

Nasdaq (QQQ) still Bullish

The market bulls felt some pressure over the last few days after experiencing a hard selloff . I turned bullish on the nasdaq when it broke above the high the of trading range. It is not uncommon for the market to pullback after breaking above a tough resistance point. You have to remeber to follow the signs the market gives us. The last pivot point held after a retest and so far looks like it is heading higher. I marked this retest with a yellow arrow. I will not turn bearish on the market until the $50 support level is broken. If the lows break after this much of a move I would expect a large move down. I would then look to short the market heavily at that point. I will remain bullish and follow the market trend until I see signs of change.

Close Avon (AVP) Position

I'm closing the AVP position even though it hasn't stopped us out or hit our target. This taking way to long to move. Avon should have popped much faster if it wanted to rally. We are better off looking for another play. Avon is pretty much near our entry price so it's a break even trade.

Book Some KONA profits

We hit $7, book some profits, we got a 40% move in one day. Nice ride from $5.20 I have a big target of $7.50-$8 which is a retest of the pivot. I expected to get this move over several weeks and we got it in a day.

Kona Grill (KONA) close to triggering

I'm looking to buy KONA above $5.20 with a stop below $4.70. This is a trade off the weekly chart so it could last several weeks. I'm looking to take profits around $7.50, near the most recent pivot high on the weekly chart. If the stop gets taken out before our entry then the trade is invalid.

Check out my  Kona Grill (KONA) fundamental lesson on Seeking Alpha.

New Apple 3D Technology

Apple just recently got approval for a new 3D technology that could take its devices to a whole new level. The new technology does not require glasses and could be viewed by multiple people at the same time. This of course is the challenge with current 3D technology. Apple's technology gives each viewer a different line of sight for both left and right eye. This perfects the stereoscopic image for a group of viewers watching one giant screen.

I could see Apple licensing out this technology to the movie theaters as well, this could bring a new revenue stream to the company.

This could be a huge advantage for Apple and could revolutionalize the direction of the industry. I could see this technology going into the next line up of devices and will most likely go into Apple TV sets as well. These new Apple TV sets are expected to launch in December 2012.

Keep an eye out for my article on Seeking Alpha that goes over the huge potential of Apple TV.

Nasdaq (QQQ) Breakout Underway

I'm now bullish on the Nasdaq (QQQ) after the breakout of the range. I have been waiting for the market to breakout or breakdown from the trading range. That move finally took place with Nasdaq breaking the high around $55.70.

I will view the next pullback as a buying opportunity for a swing trade. The pullback must stay above $52.50 that will create a higher low in the chart. A swing trade is a trade that lasts several days.

The blue arrow shows Nasdaq breaking above the 200 daily MA as well as breaking above the trading range of the last few weeks. I like the fact that the QQQ's have created a higher low with each pullback.

 The weekly chart shows how Nasdaq has held up during the last pullback near the $50 support area. I like how the market has held up in an area that was a prior resistance point for the market. Whenever a resistance point is broken, it often turns into a support area. If Nasdaq (QQQ) breaks above the $60 area and holds, I will look for further gains. I will look to move my long term portfolio back into the market at that point.

Market Is Looking For Direction

Nasdaq

The QQQ's has failed to find a direction in the market and continues to be rangebound. I'm still leaning bearish but I'm not yet ready to commit to long term shorts just yet. I want to see a breakout or breakdown before I commit to a bias.

Support is the $50 area and resistance is at $55.50, I want to see a daily close above or below for me to consider that area to be broken. I marked the key areas with green arrows.

European concerns are still a drag on the market and could finally push the market enough to breakdown. I recently moved 70% of my long term portfolio into cash (Composed of 50% T-Bills/50% TIPS) to position for a move down. If the lows break I expect a large move down which could take us to the $44 area in the QQQ's.

Europe is in a tough situation which I don't think will end well. EU has yet to agree on terms on how to handle Greece's bailout situation. If the EU were to fail to agree I could see risk off trades back in play which could lead the metals higher once again. I will keep an eye on this situation to look for opportunities to trade.

Avon

Our Avon (AVP) trade is still in play but is real close to stopping out. Normally I like to see a bounce occur much faster, but the market has been pretty choppy last few days.