Comments on: QQQ Rallies Into Resistance/Bounce Target Zone

By: Mikeflegel

Mikeflegel — Thu, 24 Aug 2023 23:40:03 +0000

Thanks for this early update randy. Not to ask the moon but I got this at nine fifty two eastern. Is it possible to have a pre Market like this.

By: Scott

Scott — Thu, 24 Aug 2023 16:07:02 +0000

In reply to Scott. Took TLT puts

By: Jeff Vandenburgh

Jeff Vandenburgh — Thu, 24 Aug 2023 15:57:33 +0000

In reply to Scott. Wow, you're right, Scott. Thanks for the heads up!

By: Scott

Scott — Thu, 24 Aug 2023 15:53:51 +0000

Bond bulls heads up. SOFR futures are selling off.

https://rightsideofthechart.com/wp-content/uploads/bpfb/2910_0-81368500-1692892382_1052-s55s.png

By: Scott

Scott — Thu, 24 Aug 2023 15:45:17 +0000

https://rightsideofthechart.com/wp-content/uploads/bpfb/2910_0-17481200-1692891901_1044-444.png

By: Jeff Vandenburgh

Jeff Vandenburgh — Thu, 24 Aug 2023 15:39:07 +0000

Really nice read on this bounce getting sold into, Randy. Hard to believe how hard stocks have fallen after the NVDA inspired rally overnight. It seems that the message is clear that the downside is not finished, when stocks, semi-conductors in particular, go from green to red after what “should” have been bullish news for the sector.

By: Ken

Ken — Thu, 24 Aug 2023 15:00:10 +0000

In reply to Scott. I suspect we might see 425 by eod tomorrow...

By: Scott

Scott — Thu, 24 Aug 2023 14:45:08 +0000

Top should be in for NVDA. This appears to be a “sell the news” event.

By: AP

AP — Thu, 24 Aug 2023 14:43:04 +0000

In reply to rsotc. Superb, will check it out. Many thanks R

By: rsotc

rsotc — Thu, 24 Aug 2023 14:38:09 +0000

In reply to AP.

SQQQ (-3x $NDX) could & would do better than 3x the drop in QQQ if it is a powerful, mostly unidirectional drop with very little consolidation and/or big snap back rallies. However, if that isn’t the case, SQQQ could suffer from the decay that 3x leveraged ETFs are prone to in those types of trends (a lot of choppy, red & green closes and/or lots of counter-trend rallies). In those market conditions, QID (-2x) or even better, PSQ (-1x, i.e.- inverse $NDX but no leverage) should be the better option.

Click on Resources on the top menu of the site, then FAQ (ETF-related questions) and read the one about holding a leveraged ETF for an extended period of time.

Bottom line: Whether to use PSQ, QID, or SQQQ boils down to how long you plan to hold the position & how you think QQQ will act on the way to your profit target, if hit. Will it likely fall hard & mostly unidirectional like those major legs down in 2022 or will it slowly grind & chop around on the way down. FWIW, I favor the former vs. the latter but whichever way you go, make sure to adjust your position size to account for any leverage (2x, 3x, etc..).