Happy Monday Randy. Any thoughts on SQQQ?

Thank you Randy

At the same point in time, his Treasury dumped tons of gold and US government bonds, whilst huge quantities of crude were suddenly purchased by the National Oil Reserve triggering an extreme reversal in the market as the quants reacted. Gold plunged, US 10Y surged, VIX turned, all markets turned by a huge amount – before they say a word.

Once this market settles and I get my money and profits out, all will go into physical gold. There is no market or proper government left. Everything is manipulated. All goes up and down artificially. This was the best example of what I’ve been suspecting for over a year, given the timing – they pressed go to early this time….

That is true (I’m going home with a modest short position on the $NDX) but as far as whether we gap up or down, that’s a tough one to call as QQQ will almost certainly close right on, just below or just above that key uptrend line off the Oct 3rd lows on the daily chart. As that is important support, we could just as easily gap up (and off it) on Monday as we could gap down below it to trigger the next sell signal. Hence, my reluctance to go home with a heavy/full short position today.

I see the bullish engulfing candle forming on QQQ today but much more significant, IMO, is the bullish engulfing candlestick from last Friday which was put in the same day that the sell single was triggered on a break below that price channel (and upper-most trendline) on /NQ & QQQ.

Ideally, you want to see a bearish engulfing candlestick come at the top/end of a prolonged uptrend and then, you want to see confirmation via a daily close below that bearish engulfing candlestick the following day, which we had.

Sure, today’s bearish engulfing helps to firm up the case for more downside but it is as not significant as last Friday’s. As far as Monday, hard to say but today’s price action is quite bearish as the dip-buyers have gone completely M.I.A. and have not stepped in to buy at the support levels where they “should” have. With that being said, QQQ is still way too close to the primary uptrend line off the Oct 3rd low to say that it has clearly been taken out. As such, the market could bounce off that level on Monday (assuming a close on or slightly above/below it today). Although holding positions over the weekend entails 2 extra days of overnight risk, I think the case to be short today is even stronger than it was when the first sell signal was triggered on Friday.

Sure. The stock indexes were/are still at or very near support with all of the FAAMGs at or about ~0.80% above the next support levels. Essentially, those supports are likely to cap the downside today & may produce a small bounce but I suspect they will give way sooner than later, opening the door to more downside in the coming days to weeks.