Snap Back to the Mean

Two stocks I mentioned, MMM and BRCM, ended their runs just shy of targets 93 and 34. Today the market is beginning with a fairly negative tone, as Nasdaq futures are -13.5 as I write.

It’s aggressive, but QID can now be bought. The higher high will change direction. A more conservative entry will come after QID goes up, pulls back, and then continues higher. That would change the trend. With QID trading 5 points away from the 50dma yesterday, I see some extreme tension on the rubber band. Price needs to snap back to the mean. We had a failed aggressive buy signal last week. My gut says this time we’ll be moving higher in QID. We’ll see.