2/8/26 Best Idea For The Week Ahead

Tech stocks were the story last week, the big moves all happened there which is why I’ve been focused on the QQQ the last few days. While yesterday was a nice move, you can see below, we never even sniffed the highs of wednesday nor did we touch the 100 day(lower white line). To me until we see how we react to that first touch of the 100 day, this is all nothing notable. We could very easily run into that next week and reject turning lower or we could rip through it and head higher. If I had to take a guess, I’d say we still need to test that 200 day down below first. That may not happen, but whatever it is, we’re in a downtrend, look at the line I drew at the top, until we break through that, this is now the structure of the downtrend. It very well could be a short lived one, but until we breakout, you’re just going long inside of a downtrend and that isn’t wise. Other sectors are on fire look at the charts of the XLP,XLE,XLI so don’t get caught up in tv saying we’re in a market selloff, we’re in a tech selloff, that’s it. Yesterday’s violent bounce to me was not bullish at all, every small cap was up double digits and yet no important levels were reclaimed. So this week ahead is really important regarding what’s next but we just broke an 8 month uptrend, a few weeks of weakness is not crazy to fathom. Just don’t panic and don’t be overpositioned in the weak sector.

This weeks best idea is definitely not a tech stock but one that has a great look after underperforming for a very long time. It is still well off its all time highs from a few years ago and I think if it can finally right the ship, this could be a name with 100% upside in the coming few years to just long commons on. We’re going to look at a few various plays to play this while look at some key levels on the charts.