Let's take a quick look at the tracking stock QQQQ for the last 6 months. At point 1, she broke the short-term up-trend line in November and spent two months hovering around the 50dma (point 2). At the start of 2008 she broke the new support from November lows and fell steeply yet again (point 3).
Today's rally could be the start of a tradable bottom that takes the market back to the recent support (point 3) and if lucky, back to the 50dma. Don't think about being bullish or bearish -- just look at the following chart and interpret it. What does it tell you?
For you perma-bulls, there will always be strong sectors, seek them out (for example agr-fert/gold thus far still holding) instead of trying to catch falling knives on old leaders.
Let's see how far they can bounce this cat.
