QQQ daily March 8th close
The swing targets for the current QQQ short trade based of the daily chart have been slightly revised, with the former T2 now re-sequenced as T1 (100.09 and/or uptrend line). The previous first target was listed as the minor uptrend line, which formed the bottom of a rising wedge pattern, but upon further review of the charts, I believe the odds favor a move down to the 100 level in the Q’s (4100 on the $NDX). For those who experienced with trading options, by my guesstimation, if the QQQ short continues to play out as expected, that preferred target of T1 is likely to be hit on or around Thursday, April 23rd, which is the date on which the 100 horizontal support level intersects with the 3 1/2 year uptrend line shown on this chart.
A preferred price target is the level in which I plan to cover my position when reached although I will often revise my trading plan, covering a short trade before or after the original preferred price target, should the charts convince me to close the trade early or extend it beyond my original price target(s). Hence, there is a good chance that this trade, assuming that it plays out, will be closed & removed from the Active Trades category upon reaching the T1 level at 100.09. Should sufficient bearish technical developments occur before then, either T2 or T3 may become the preferred price target.
Regarding the SQQQ (3x QQQ short etf) alternative trading vehicle, the targets listed on the QQQ 60-minute time frame, T1 at 106.25 & T2 at 105.33 remain the suggested sell/cover levels for that position as leveraged etfs are best used for short-term trades lasting hours, days to usually no more than a couple of weeks. One option for those using SQQQ is to close the position when the first or second 60-minute target is hit, then roll into a QQQ short or long QID (2x short QQQ etf) position on the initial bounce.