/NQ (Nasdaq 100 E-mini futures) has just hit my preferred bounce target of 9111 where I’ve just added a second lot to the swing short position that I started scaling back into about 0.25% below when QQQ hit the 221 bounce target while also closing out the long-side bounce trade taken yesterday. This will be the last lot that I add before AAPL reports tonight, taking me to about a ½ swing position while I will either add to (only on weakness, more downside in /NQ and QQQ) or close it out, depending on how the charts develop after the open tomorrow, once the market has had time to digest the earnings & following conference call from Apple. Previous & updated 60-minute charts below:
I am not adding QQQ as an official short trade due to the aggressive nature of shorting before such a potentially market-moving earnings report, not to mention the other 4 market-leading FAAMG stocks which all report over the next week. I’m also keeping the official & new trade ideas light until we’re over the earnings hump later this week or early next week as we’ll have much better visibility to the next direction in the stock market once the FAAMG earnings are out of the way. However, I will say that this appears to be an objective level for an aggressive swing trader to initiate a partial/starter swing short position on any of the major stock index ETFs or futures.
The overall trend is still very bullish & this market has been rising despite growing bearish technicals developments for months now so while we did just recently get the first decent sell signals on the shorter-term, intraday time frames, there is a little more work to be done on the downside in order to provide some decent sell signals on the more significant daily & weekly charts to make the case for aggressively adding swing short positions that might last weeks+ and provide double-digit gains.