Why QQQ & DIA Charts Signal New Highs for 2025
Plus, trading PYPL and BX to set up big profits at the start of the new year.
It is time to close out the year strong and that includes setting up trades to start 2025 off with a head start.
It might be the most important thing a trader can do this week.
Setting up to start the new year profitable allows for more flexibility. If taking on more risk is your style, early profits are exactly what you’re after.
And for those that are looking for better risk to reward trades, getting ahead early means less pressure to “catch up” throughout the year.
I like more upside in the near term so those are the trades I am focusing on first. While there are opportunities to short, I am sticking with the trend which is up and to the right.
You have to love the overall momentum in the markets over the past year. Across the board there have been significant gains - SPY, DIA, QQQ, IWM, and BTC. All making big moves!
Two charts that stand out to me currently are the candles for QQQ and DIA. Each for different reasons. Each looking ready to continue higher.
First, QQQ has held the trendline firmly and is now cruising back above its 50-day simple moving average (SMA).
The relative strength index (RSI) at the bottom of the chart has bounced nicely off of the midpoint and is trending higher again.
The prior high at 515.58 was retested with big volume coming in to hold the closing price above this mark. The next target is the most recent high of 539.15 which I think is likely to be taken out quickly.
The chart for QQQ shows no signs of slowing down yet.
The chart for DIA is similar and worth taking a hard look at.
The candles are below the 50-day SMA. RSI is below the midpoint.
Why am I thinking the chart for DIA is powering higher?
First, the recent gap was filled. I like gap fills for their consistency. While not perfect, I have found trading the bounce after a fill to be a good trade.
Second, the volume shelf that sticks out near the 420 level was respected with a fair amount of trading coming in to hold the line.
Lastly, while RSI doesn’t look great it is starting to move back up and a cross above the midpoint while DIA moves back above the 50-day SMA would be a great entry point looking for additional gains to follow.
Keeping a close eye on the indices and the tickers that track them is something I do on a daily, weekly, and monthly timeframes. I prefer to always trade with momentum.
That said, the bigger money is made trading invidual names and that is where I spend most of my time and where nearly all of my trades are made.
Two names with charts setting up really nicely are PYPL and BX.
PYPL tested the 50-day SMA and is now ready to run back to and above 87.90. If markets stay hot, $100 is the ultimate trading target for this one.
The chart for BX is also promising and looks ready to make a 20-point move higher. The best part is actually the very tight stop loss that the trade offers.
And with that, it is time to get to the options trades I’m considering for both PYPL and BX.
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