QQQ (Nasdaq 100 ETF) offers an objective, yet aggressive short entry here on what may prove to be the end of a counter-trend rally. As such, QQQ will be added as an Active Short Trade around current levels (181.37+/-). As the previous short trade on QQQ was intended as a relatively short-term swing trade to capture the a good part of the I believed to be the initial leg down of a much larger correction with more downside to come (which it did), the current trading plan for this trade is to attempt to capture the bulk of a potentially much larger leg down. As with any trade, the trading plan might be revised, depending on how the charts develop going forward, but all modifications to a trading plan on official trade are sent out via email in advance when published as a front page post.

QQQ daily June 7th

QQQ daily June 7th

The price targets for this trade are T1 at 169.85, T2 at 160.85 & T3 at 156.70 with a very high likelihood that additional targets will be added if the trade starts to pan out & QQQ falls below the first price target. The suggested beta-adjusted position size for this trade is 1.0 and the suggested stop is a daily close above 188.30 which would result in a loss of ~3.9% vs. a gain of ~14% if T3 is hit & much more if additional targets are added & hit.

While this is certainly a counter-trend trade & as such, carrying with it an increased risk of failing (i.e.- being stopped out), the above-average R/R more than makes up for the increased chance of failure IMO. Again, this is a fairly aggressive short entry and as such, more conventional/less risk-averse traders might opt for some type of sell signal before taking a full or partial short position in QQQ.

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