island is becoming the size of Greenland…

pkm- While I think that your TZA trade will likely start to move in your favor soon, just don’t become complacent with your stops. QQQ did move below 116.00 but only very briefly & by the slightest margin & without any follow-through or impulsive selling so I wouldn’t consider that a breakdown, rather just most likely a quick stop-clearing run on the day traders.

Again, I think that the 116 support (and 215.30 on the SPY which is a little further below) will be taken out with conviction soon & personally, I’m not overly concerned with Friday’s Employment Situation report or Jobless Claims on Thursday morning. If you try to manage your swing trades around the economic calendar, then you’ll never be in a position for more than a few day or so as there’s always something due to be released that could cause a knee-jerk reaction in the market either way. That’s just me, of course, so by all means, if you are concerned about being caught on the wrong side of a gap later this week then you might want to close or lighten up on the position before then.

As far as buckling your seat belt, you bring a good point that most should be aware of. It is often on the heels of such periods of extremely low volatility, such as the one that we have been in since early July, that some of the sharpest rallies & corrections emerge from. While the summer doldrums can go on for a while longer, it would be a mistake for a trader or investor to accept this as some kind of ‘new norm’ in the market, therefore thinking that it’s OK hold above average position sizes (other than day traders) because the overnight risk of a large gap or sudden sharp rally or sell-off no longer exists. So yes, while most traders & investors are probably falling asleep at the wheel (or their desks) right now, just make sure that the airbags are turned on & the seat belt is buckled as this market can go from zero to sixty in the blink of an eye, given the proper catalyst.

YW Dan. Looks like another successful test of support so far with the Q’s bouncing off that 116 level… tap, tap, tap. It would be preferable for the bearish case for the 116 support level to hold today, with QQQ opening lower in the coming session to gap down below it as that would put in a potential powerful Island Cluster Reversal top on the daily time frame. Whether that occurs or not, I’m still on watch for a solid break below 116.00 (not by a just a few pennies), including a 60-minute close below as well as impulsive selling (i.e.- large red candles on increased volume).