Navigate Those Icy Waters

It is hard to fathom that the QQQ is flipping red as I write this even as the small caps and semis surge roughly 2.5% today. Then again, this market has been featuring some icy waters for a while now apropos of the type of February much of the country has seen in terms of the weather. 

Thus, on a dreary, OPEX Friday let us keep things simple with an updated QQQ hourly chart from yesterday. That line on my chart never changed from yesterday's analysis, with $334 acting like a brick wall above earlier in the session. 

This is all happening amid another spike in rates, as seen by the TLT chart knifing lower yet again. So, the QQQ names may be keying off that. So what are the small caps keying off? Crypto, it appears, as a gauge for speculative fervor, with the Bitcoin names popping wildly yet again. 

This is a truly fascinating setup into next week with competing forces, especially with the State of the Union apparently on the shelf for at least another two weeks. Put another way: Which asset class blinks first? Crypto, bonds, equities, or perhaps FOREX? Gold is lagging silver badly, but some notable gold miners like AUY are printing bullish divergences today versus recent lows. 

For now, watch $334 on QQQ above, and if the Q's stay red I would look to see if there is some profit-taking in the RIOT MARA names into the weekend. 

We will update this analysis fully with Members over the weekend.