QQQ daily March 18th
The QQQ swing short trade has exceeded the previously suggested stop of 107.58 with the most recent 60 minute close (3:00pm ET). That trade will now be moved to the Completed Trades category and considered stopped out for a loss. I am also adding the QQQ back here around the 108 level as a new Active Short Trade with the sole price target at this time as the same preferred target (T1 at 100.09) from the previous trade.
From the larger perspective, I still believe that the bearish rising wedge pattern on the daily chart has a good chance of playing out soon for a move down to at least the 100 area in the Q’s, thereby providing an objective entry, add-on, or re-entry on a QQQ short.
The most recent trade in the QQQ was actually a mixed bag of several “sub-trades”: The daily swing trade, which was stopped out today; the short-term swing trade on SQQQ based off the 60-minute charts, which hit the final target a week ago today for a quick 9% gain; and even an “unofficial” very short-term trade idea based off the 1-minute charts which was posted on the twitter feed yesterday and hit the sole profit target earlier today shortly before the FOMC announcement.
This latest trade is once again a swing trade with the same preferred price target (additional targets may be added) & the same expected time frame (100 level expected to be hit on or before April 23rd). Personally I extended my stops & added to my existing QQQ short trade via a small position of puts that expire at the close Friday but with the market moving fast today, combined with the fact that I outside commitments that kept me away from my desk until shortly before the FOMC announcement today, I did not have time to communicate my thoughts on the QQQ trade earlier (other than the add-on via twitter).
The suggested stop for this QQQ short trade is 111. That is somewhat below my typical minimum R/R of 3:1 as there is a very good chance that additional downside swing targets (T2 & T3) will be added to this trade if it begins to play out. Of course, always use stops and trade according to your own unique risk tolerance, trading style & objective.