Lol! I was too….put a smiley face at the end of my post :) Happy and safe trading tomorrow.

@stockninja – I was actually just joking. I’m rather baffled by the TP hoarders. Last I heard, the virus doesn’t affect the bowels so much.

I have been trading SQQQ for my QQQ short. I use conditional orders (on Fidelity): on the downside, when QQQ is equal or less than X, it triggers the second order, which is a buy or sell order of SQQQ, works like a charm…

@gthompson333 are you sure you’re forecasting accurately? 10 years? You should check here. https://howmuchtoiletpaper.com/ :)

Great information.

Thank you.

Agreed. I reviewed the charts of the 11 sector ETFs earlier today & XLV stood out as one of the more compelling & timely short candidates as I have it backtesting both trendline as well as key price resistance (both former support levels recently taken out).

Exactly. Tons of shelf-stocking going on over the past month creating a near-term boost in sales (of mostly low-margin items) to be followed by a drop in demand. More importantly, sales of TP & hanitizer aren’t going to boost GDP or provide any measurable offset to the drop from large ticket items such as autos, boats, trucks, RVs, aircraft, collapsing revenue in the service, hospitality & leisure industries, luxury goods, etc..
I believe that other than the technical conditions that preceded & fueled the recent rally (excessive short interest, P/C ratios, forced liquidations, extreme oversold conditions, bullish divergences, etc…) the fundamental driver more recently has been a gravely misplaced belief by the general public that the projected peak in Coronavirus somehow means that it will soon be completely behind us & that the market will explode higher just as it did off the Dec 24, 2018 lows, with business & the old bull market back to normal. Maybe that proves to be the case but I don’t believe it will be.

Two ways to do that, regardless of which of the many different short (inverse) and leveraged or non-leveraged (1x, 2x, or 3x) ETFs you use:
1) Align the support & resistance levels (key reactions, top & bottom of candlesticks on certain days, trendlines, etc..) to the chart of the short/leveraged ETF that you are using with those same levels on that SPY 60-minute chart I am using for the official trade. Most importantly, make sure that you use A) log scaling and B) a 60-minute chart, otherwise the levels won’t line up very well.
2) You can either manually calculate or use your chart program’s percentage measuring tool to find the rough distance from the current price level on SPY to the price target(s) that you are targeting as well as the stop and then extrapolate those values (factoring in any leverage) to the chart of the short/leveraged ETF you are using. e.g. SPY was about 2.25% below the suggested stop of 279.09 and about 10% above the T3 current final target from the entry price of 273.17 on the chart posted with the trade. Therefore, using SDS (2x short SPX), you would use a stop of about 4.5% and align T3 to about a 20% drop from where SDS was trading when the screenshot of that SPY chart was taken around 9:38 am EST today (time & date stamp on the lower-left corner of each chart).