After reviewing the charts of the major stock indices & futures last night & so far this morning, I have decided to modify the suggested stop on the TQQQ (3x bullish Nasdaq 100 ETF) from any move below 55.10 to any move below 54.00 after the first 30 minutes of the regular trading session today (10:00 am EST). The 60-minute chart below reflects prices as of yesterday’s close. TQQQ is currently trading around 53.85 in pre-market right now.
TQQQ 60-min Oct 10th close
While the market could certainly go either way today, I still favor a green close today & tomorrow with the possibility of an early session dip that could take the major stock indices down to some nearby support levels while clearing out a batch of stop-loss orders & pulling in a few more late-comer shorts before reversing & recouping a fair percentage of yesterday’s losses.
While the futures continued to slide after the close yesterday & are still indicating a gap down at this time with /ES & /NQ trading down about -0.5%, the future have mostly stabilized throughout most of the late day & early morning session so far. While lowering the stop on this trade, as well as allowing for a 30-minute “wait & see” period brings the R/R down to a less than favorable ratio, personally I think that the upside gain potential is worth giving this one some extra room on the stops.
As always, the suggested stops, targets, etc. are just that, general suggestions & reflective of how I trade & what I am doing or might do with a particular trade. I encourage everyone to not only take & pass on trades that mesh with their unique trading style, objectives, risk tolerance & of course, their outlook for that position but to also use targets, stops & position sizes that also mesh with their own trading style.