I had planned to either reinstate or modify the stops on the QQQ & IWM trades no later than shortly after the market opened today but decided to hold off & watch the price action for a bit before to see if there were any compelling developments in the technicals today.
I’ve been closing monitoring the market action on numerous metrics such as the price & volume action of all the major US stock indices, price & volume of the market leading stocks as well as the many of the lower quality names & speculative stocks such as the shippers/marijuana stocks, market breadth, etc.. & I can say with a fairly high degree of confidence that it appears that the recent post US elections rally is in the final stages & likely to be faded soon. That view that is further supported by the history of corrections typically starting within one week of OpEx ramps, such as the rally from Nov 7th into last Friday (OpEx).
With that being said, while I personally plan to give my own short positions in QQQ & IWM a little more room before stopping or scaling out, I will post an update to either reinstate or slightly modify the official suggested stops on the IWM & QQQ trade shortly after 3pm ET (about an hour before the market closes). From the look of the intraday charts, a sell-off into the close appears likely today so I’d like to see if that beings to materialize and if so, how convincing/impulsive will the reversal be as that might give us some clue at to whether any pullback today is likely to carry over into tomorrow & beyond or not.