Tech stocks are setting up a potential trade that I want to walk you through. Here is an example of a trade set up one of my favorite indicators has signaled, the chart that helped me spot it, and the steps you can consider supercharging this move for the maximum potential.

QQQ, or the Invesco QQQ Trust, is an exchange-traded fund that trades on the Nasdaq under the symbol QQQ. It is designed to track the Nasdaq ETF stock market index. In studying the QQQ I have found that Fibonacci Exponential Moving Averages (EMA) are extremely effective at providing great trade signals.

Let’s start with a look at what the NASDAQ, the index QQQ tracks, has done recently.

This chart image is courtesy of FINVIZ.com a free website and gives a quick view of each day’s movement. 

If you want me to just shoot you a text or an email when I spot a trade like this, you are going to want to take a look at this.

EMAs work well as they give a greater weight to the most recent prices and provide signals that tie directly to current price moves. Using Fibonnacci EMAs helps provide price targets to build the most effective positions. To find out more about EMAs, click here.

The EMAs on the chart below are represented by the colored lines:

In this example, you see that the EMA’s are in the correct order however there is the slightest curl down and red candles. This may indicate a change in direction.  During times like this it’s okay to wait for a more solid indication of direction. We will wait until next week to see which direction QQQ goes.

QQQ Potential Trade:

QQQ stock is at $623.15 and the EMA’s are in uptrending order indicating a BULLISH trend. If the stock reaches $624 this would be an entry point. If you chose the Jan 16th 640 call it would cost around $8.33. If the stock price went to 630 you could expect to make around $300. Your investment of $624 plus $400 would be a 48% profit.

Trading options can be a win, win, win opportunity.  Options often offer a smaller overall investment, covering more shares of stock and potential for greater profits.

Our lives should be filled with joy. As many minutes throughout the day as possible, we should be happy.  Figure out what you love and do it. Love what you do, and with all your heart give yourself to that love.  Enjoy your life and the people in it. 

I wish you the very best,

Wendy

Past potential trade update:.

Last week we discussed buying QQQ calls. If you bought the Jan 17th 625 call on 12-2 it would have costed $13.07 and you could have sold on 12-4 for $17.76, a 26% profit.

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