By: rsotc

rsotc — Thu, 14 Jan 2016 14:45:10 +0000

jupiter- As close as we are to the 100 level (closing 2% above yesterday), that may have been it so any meaningful rally that starts soon could get enough traction to last for weeks. The short reply is that I just don't know, at least at this time, the answer to your question. One thing that I try to force myself to do in trading is to step aside when my read on the charts isn't very good. Chances are that most of the "meat" on the bone for the TQQQ/QQQ short trade has already been consumed, at least for the initial leg down (assuming that we are still in the early stages of a new bear market with much more to come). If so, I'll just have to determine the next objective entry as the charts develop. Regarding the current (Active) TQQQ/QQQ short trade, the most objective entry was the original short which was posted on Oct 28th (less than 2% from the top). The second most, but still very objective entry was the breakdown of that that Oct-Jan sideways trading range & especially the backtest which occurred shortly after. From there, the R/R steadily diminished with each tick lower to the point now where the R/R most likely is skewed to the long-side, despite the fact that the markets are in a vicious & clearly defined downtrend. Skewed towards, but not heavily or clearly favoring the long side... at least not yet. Again, to your question, I don't have a good answer just yet but will continue to study the charts and communicate my thoughts as soon as I have an opinion that might be worth sharing. G-luck on your trades!

By: jupiter

jupiter — Thu, 14 Jan 2016 14:13:31 +0000

Hi Randy,

Should we get a rally either this week or next, how can we know if that rally will be sold, and we reload to short?

Thank you.

Comments on: Pre-Market Comments- QQQ

By: rsotc

By: jupiter