Bounces Rolled Up and Smashed

By my work, every single component of the ARKK ETF is in the red as I write this.

While that may seem as though I am picking on Ms. Wood, quite the contrary--As recently as yesterday, I was playing one of her beloved holdings on the long side for a quick bounce: DKNG. 

However, as we noted with Members, the DKNG play was a quick date only, not a relationship or anything of the sort. Thus, I was willing to part ways with it yesterday and risk having sold too soon. 

Into the heart of an hopeful rally earlier this morning on the back of AMD and GOOGL smashing earnings with hearty rallies, a fade is setting in as we head towards noon on the east coast. The payments plays, thanks to PYPL, are getting worked out, be it SQ (also an ARKK play), not to mention crypto superstar MSTR sinking after earnings in its own right. 

Having said all that, it is imperative we stay objective as possible. Bears can easily cherry-pick the ARKK or IWM weakness here, let alone PYPL or MSTR. But the critical issue for us is whether the QQQ ETF (for large cap Nasdaq names) fails at the $366/200-day moving average area, which you can plainly see on the updated daily chart, below. 

Headed into FB, then AMZN earnings the next two evenings, followed up by the big jobs number Friday (is bad news good news again? or is bad, bad?), this is still the main test I am keying off of to determine my next batch of trades.