The LQD (investment-grade corporate bond ETF) Active Short Swing Trade idea has hit the first target, T1 at 124.70, for a quick 5.2% total or 10.4% beta-adjusted gain*. Consider booking partial or full profits and/or lowering stops if holding out for T2 or any additional targets (to be added soon). At this time, the suggested stop will be lowered to 130.00 to at least assure a minimal profit on the trade, should LQD reverse & rally back up for a backtest of the trendline (which I see as a very unlikely possibility). Previous & updated daily charts below.

With the recent price action in both LQD as well as the stock market still supporting my outlook for considerably more downside in both in the coming days, weeks & possibly months, additional price targets (TBD) will be added to this trade & will follow soon. As such, T2 remains the next target but not the final target for this trade. As with the QQQ short trade, my intention with LQD is to allow it the potential to morph into a longer-term trend trade while attempting to capture the bulk of what could prove to be a much larger drop in the coming weeks to months. As always, one should use stops & profit targets that align with their own unique risk-tolerance, trading style, and outlook for a potential trade and pass on trade ideas that they are not comfortable with.

The reason that multiple price targets are often provided for the trade ideas on rsotc.com can be found in the FAQ page under the Trading Related Questions sub-category or by clicking on this link.

*The suggested beta-adjusted position size for this trade was 2.0, or 2x a typical position size. An explanation of what I refer to as beta-adjusted position sizing can be view by hovering over that term on this page or by clicking here.