Market Up, Q’s Soared

Editor's Note: below are just some trading ideas flow from our latest Headlines.

We've offered in the previous Market Outlook:

"Market had reached a short-term extreme oversold condition, a situation that is a precursor to a counter-trend rebound."

Stocks gained ground across the board Monday with the NASDAQ gained more than +28 points or +1.06% to 2753. The trading action was very consistent to what we've predicted in our Friday evening "Cubes Speculator Bulletin":

October 19, 2007 @ 10:30 PM:

• "Buy the dip…the Q's is likely to move lower Monday. Expect a test of …$53, if the Q's manages to lure some bargain hunters around the $52 level".

The Q's bounced off nicely after an initial lower move into the $52 level (the exact morning low was $52.02) was greeted by a new wave of buying interest. The stock reached as high as $53.12. The newly in-the-money call option setup gained about +30% intraday.

 

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