A pattern is emerging that should worry bears, notes Jon Markman, editor of Strategic Advantage.

Companies are issuing earnings that miss consensus estimates, and the stock prices are rising anyway.

When stocks rise on bad news it means the trend is changing.

After the close Wednesday, Alphabet (GOOGL) and Microsoft (MSFT) both missed their quarterly earnings estimates. Shares are trading higher by 6.8% and 5.4% respectively. This feels like the reaction a week ago to poor Tesla (TSLA) results.

I know bears will see all of this differently. I get it. They are set in their ways. They are waiting for someone to ring a bell and tell them that the downtrend is over. It doesn’t quite work that way.

Let’s move to the long side of tech. ProShares Ultra QQQ (QLD) is a leveraged ETF that moves twice as much as the Nasdaq 100 (NDX) index. I suspect that the underlying index is headed to 12,350, a gain of 4.2%.

Strategic Advantage TradeView:  Set up to buy ProShares Ultra QQQ (QLD) at $48.25 or less. Set target at $52.00. If filled, set a stop at $45.20 (effective after 11:00 am ET only)....The price at 2:55 pm ET today was $49.00.

Learn more about Jon Markman here...