We are starting to see some clarity in a cloudy market. More and more strong set ups are popping up and Keith Harwood sent over a great position he has spotted.


Scroll down and check it out.

(more below)
From Keith Harwood of OptionHotline…

We are entering a very interesting period right now.  Today is the final day of the first quarter of 2021.  This weekend is a holiday weekend.  And the markets have been chopping like crazy for over a month, causing frustration for many trend-followers.


But, there seems to be a light at the end of the tunnel for those looking to trade with a trend.  I want to specifically look at two sectors here: technology and oil.


First, when I look at QQQ, I see a very clear coil that’s been progressing, and as the ranges tighten over time, it sets up for a breakout (or break down) and a potential for a big move that could also signal the start of a new trend:

Second, when I look at USO, I see the same type of choppy action with ranges tightening, albeit over a slightly shorter time period:


Put it all together, and we could see a complete shift in the type of trading that generates success for the second quarter.


The first quarter rewarded those that sold into rallies and bought the dip in oil and technology.  Will that be the case for the second quarter?  Only time will tell, but if I see a move out of these tightening wedges in the next few days, I’m going to be avoiding selling rallies or buying dips.  This seems to me to be a time to look for the trading style in these two major sectors to change and follow the money-flow that we see at the beginning of a new quarter.


Make sure you all take a chance to review how I apply technical signals to my options trades at https://optionhotline.com, and if you have any questions, never hesitate to e-mail me.


Keith Harwood

[email protected]

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