John Carter Analysis: QQQ, IWM, TSLA, NFLX, TLT, UUP, BIDU, GPRO, FFIV

In today’s market update, we’re looking at a few indexes to get a sense of the broader market and then having a look at select names to see if we can find any clues about the next move. The QQQ Nasdaq ETF is showing exhaustion on the weekly chart and indicating an imminent directional break on the daily. The IWM small cap index has led the market both to the upside and downside, so we’re watching it closely heading into today’s FOMC Decision as well. The market’s darlings, TSLA and NFLX have gotten hit hard to start the week, and this is a major warning sign because if money is coming out of the top growth stocks, it will likely come out of other names as well. The question then becomes, where is money going? The TLT shows bonds selling off, the Yen has also been weak, the only thing really showing strength has been the US Dollar (UUP). As far as our current positions, BIDU is hanging in there and we are looking for consolidation. The GPRO call spreads are acting well despite the recent heat. The NFLX position hasn’t worked out, although a reversal is still possible depending on the market reaction to the rate decision. I’m looking at FFIV as a possible new entry, as the stock has been relatively strong over the last few days.