QQQ (Nasdaq 100 ETF) will be added as an aggressive short trade here around current levels with a tight stop at 218.50. The sole price target for this trade is T1 at 195.35, set just above the 194.90ish support level. The suggested beta-adjusted position size for this trade is 1.0 (i.e.- a typical position size).

QQQ daily 3 March 2nd

QQQ daily 3 March 2nd

I consider this an aggressive trade for several reasons, including but not limited to the fact that the stock market is in a current near-term uptrend (since Friday’s lows) while coming off deeply oversold levels as well as the fact the previous QQQ long trade hit the final official target (T2), which was the point at which the R/R to remain long starts to drop off substantially (hence, the final target).

The way I look at this trade is the fact that I counter-out the risk of being stopped out for a relatively small loss with the above-average gain potential, should the Fed’s emergency rate cut backfire on the stock market, as I suspect it might. As always, pass on this one if it does not mesh with your trading style, risk-tolerance, and/or outlook for the equity market.