The SOX and QQQ have been thrashing across their 200-day moving averages the last three days, and it feels like they’ve done enough testing. The NASDAQ never quite made it low enough to touch its 200 DMA, and I’ll take that as a good sign that a bounce is due. Investor types (long term money) should be putting money to work right in this area, and they’ve been waiting a long time. The last time the NASDAQ touched its 200 DMA was April 2003. That’s also the last time my weekly stochastic on the NASDAQ was in oversold territory. Its finally back there again. However, I’m still seeing very little that I was to buy in my trading account. (I may put some IRA money to work though.) There are a few biotech, retail and wireless/cellular plays I have my eye on as longs right here, but I still think that the easier money will be made finding shorts after the next bounce.
