Bulls Make Progress
The bulls made progress on Friday after a big flush early into the Thursday session. This could set the tone for more upside next week. Should the market be able to grind higher, it will need AAPL and AMZN to continue leading the way.
QQQ
The above chart of QQQ shows the Friday close above the 21 exponential moving average (EMA) with neutral Big 3 signals from top to bottom. While this isn’t the green light to get long, it’s a step in the right direction for the bulls. The next step is green Big 3 (buy signals) on the lower time frames. If the QQQ trades under the daily 21 EMA, the bulls could quickly lose their progress as they have many times over the last few weeks.
At the moment, AAPL and AMZN are the clear leaders in big technology, like Shaquille O’Neal and Kobe Bryant in basketball. This will have to continue for the overall market to trade higher. Both names have better structure than their peers, trading above their daily 21 EMA’s with Big 3 buy signals on the lower time frames.
AAPL
For AAPL, we had a 15-minute squeeze printing our buy signals late Friday afternoon. We used that as our opportunity to buy calls for next week’s expiration. The weekly 21 EMA for AAPL (and previous weekly support) is around $152. We’re looking for this to grind into that level out of this 15-minute squeeze next week.
AMZN
Similar to AAPL, AMZN offered a 5-minute squeeze with our buy signals Friday afternoon. This led to a great rally shortly after. So long as AMZN is going to act as leadership here, we’ll be looking for more of these “moments in time” where our favorite combo, squeezes and Big 3 signals, come together to offer great trades.
Check out my free webinar replay here for more information on the Big 3 buy and sell signals.
Stay Focused!