I’m Back From Vacation And…


And so — maybe — are the Cubes (NASDAQ: QQQQ). A day after logging a distribution day / shakeout the Cubes rallied 1.9% on a 30% jump in volume. This was this highest volume up day since November 3 last year (see pink marks on chart where I highlighted). The November action lead to the rally that took us to the current base in which the Cubes have yet to close decisively, or even indecisively, above resistance around $42. In fact, today’s candle has an upper shadow above $42, showing the intraday rally failed/paused late in the day. It should be noted, however, that the NASDAQ Composite Index hit a 5-year high and crossed resistance around 2,330.

Where do we go from here? We’ll have to see. A rally from April into May would not be surprising given seasonal tendencies, although a rally failure could also materialize at any time. For any rally to develop the Cubes will have to follow through on yesterday’s action with another big up day at some point in the next week. Without that, I’d look for another failure. Cheers!

PS: Where’d I go on vacation? Skiing in Sweden. See pics (more later too).