QQQ (Nasdaq 100 Tracking ETF) will be added as an official, yet somewhat aggressive short trade in anticipation of a breakdown & likely gap below this minor uptrend line next week. The final target at this time is 121.82 (or the purple uptrend line, should that come in first if/when QQQ approaches the 122 area). The maximum suggested stop is any 60-minute close above 131.60 (or lower, if only targeting T1 or T2).
QQQ 60-min chart Feb 17th
As shorting a stock or ETF which is well-entrenched in an bullish uptrend before any sell signals simply in anticipation of a breakdown below support which has yet to occur is an aggressive trading strategy, more conventional or risk-adverse traders might opt to wait for a confirmed break & 60-minute candlestick close below the minor uptrend line and/or 128.90 level before initiating a short position. One could also take a starter (partial) short position here, bringing the the trade to a full (or over-weighted) position if & when QQQ prints a 60-minute close below 128.90, which is minor support plus slightly below the minor uptrend line.
The suggested beta-adjustment for this trade is 1.0 (i.e.- a typical position size) with an over-weighted position/beta-adjustment of 1.5, should the QQQ break & print a 60-minute close below 128.90 early next week. Keep in mind that the U.S. markets are closed on Monday for President’s Day. If using any leveraged bearish ETFs such as QID (2x short QQQ) or SQQQ (3x short QQQ), make sure to factor in the amount of leverage to your position size.