Depends on the timeframe you trade. If you do swing trading or position trading, yes, this is just the start of the drop. The market and the stocks have more room to drop in the weeks/months ahead based on weekly charts . If you do quick trades say 1-2 days, we might have a relief bounce based on hourly charts. Here is an example on CSIQ - look at its weekly chart especially the technical indicators, it is starting to pull down, you can bet the downside chances are higher in the weeks ahead. The next look at the daytrading chart, CSIQ will either go down from this level (middle of the bollinger band) or up to $26 and pullback tomorrow.
Same to LDK, the weekly chart doesn't look good at all, looks like it is forming a lower low and lower high red candle for this week. When a red candle is formed, usually a few more red candles follow it ( a few more down weeks). But if you look at the daily chart, 200 day/50 day SMA has been a support, it bounces from the levels. $43.5 is the value area (pink line) for the past 6 months. In general, I believe the solar sector should outperform the general market or other sectors regardless the market up or down in 2008. LDK weekly: LDK Daily:
As for QQQQ, look at its monthly chart, certainly more ugly months to follow. It stopped dropping at 200 period MA on the monthly this week. A red month finish or red candle formation seems inevitable, then, we are looking for three more red candles, $42-43 area is not impossible (50 period MA and trendline).
Hey, I really appreciate your input. My intention when I adopted this position in ATV was to ride the stock down until about 8. So I'm going to take a careful look at the charts you put up to see how much of this is technical factors only, how much ATV exploring new lows. Off the cuff, given the late rally, I also expect a brief rally followed by continued weakness. DH
DH, ATV has no signs of a reversal yet on weekly or daily. ATV weekly: ATV 15 minutes, look at the area of resistence in the box to go short again:
A chart like ETFC is what I like, a nice candle formation yesterday (signal of trend reversal), shall see a nice sky blue candle (higher high and higher low), if it is starting to move, ETFC could see $4s. Intraday wise, a dip to $3-3.10 would be super:
ETRD has been trading at 0.05 to 0.10 narrow range for almost three hours, it will up or down to break this range.- 1 million volume tick chart:
ETFC bounced right off 3.10, $3.20 could be a tough resistence to pass. But if it passes 3.20 this time, could see a big short sqeeze coming.