Comments on: Shorting TQQQ https://rightsideofthechart.com/shorting-tqqq/ Stock Trading, Investing & Market Analysis Thu, 29 Oct 2015 03:07:55 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: rsotc https://rightsideofthechart.com/shorting-tqqq/#comment-614 Thu, 29 Oct 2015 03:07:55 +0000 http://rightsideofthechart.com/?p=168677#comment-614 Compression Point- I’m with you on that. Although I’d be a fool to say that a melt-up scenario is out of the question right now & even if it comes I am very comfortable with the R/R of shorting the Q’s here for what has the potential to morph into a multi-week/month swing short trade. With a max downside loss of about 11% (a beta-adjusted loss of roughly 3.75% when accounting for my reduced position size) and a minimum expected gain potential of about 40% (should the Q’s revisit the 98 area), this is very much a “sleep well at night” trade for me, plus, I only took a starter position that I plan to add to only on strength (i.e.- below my entry price or on “weakness” of the Q’s, to be more accurate). Best of luck on the trade.

]]> By: Compression Point https://rightsideofthechart.com/shorting-tqqq/#comment-613 Wed, 28 Oct 2015 20:17:48 +0000 http://rightsideofthechart.com/?p=168677#comment-613 In reply to rsotc.

Randy, I jumped in with you, though I waited a bit and sold at $121. The NDX is overbought, it’s hugging the upper Bollinger band, and it’s had a recent big gap up. I’m not as worried about this as I usually am. I’m looking forward to seeing your suggested close levels.

]]> By: rsotc https://rightsideofthechart.com/shorting-tqqq/#comment-612 Wed, 28 Oct 2015 19:54:32 +0000 http://rightsideofthechart.com/?p=168677#comment-612 In reply to glenjones.

Certainly the less-aggressive play & yes, seasonality favors the bulls at this point. However, it also seems that a lot of the biggest corrections have also come around this time, even though the bullish events outnumber the bearish events. I’m referring to how the market performed for the next 2-3 months. What I did was overlaid 52-week (1 year) cycle lines starting on Oct 30, 1995 (or as close as I could drag & release those lines so give or take a few days) on this 20-year weekly chart of the $NDX. http://schrts.co/jQFmyy

]]> By: glenjones https://rightsideofthechart.com/shorting-tqqq/#comment-611 Wed, 28 Oct 2015 19:22:17 +0000 http://rightsideofthechart.com/?p=168677#comment-611 I am more inclined to wait until late next week to put on market shorts as these two weeks are quite bullish historically. I can see the divergences forming and sentiment is excessively strong, but I don’t want to fight the usual bullishness at this time of year. I”ll be watching for a chance next week.

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