Options are in fact well, an option for those of us who don’t have 7 figures in their futures account ;-) … what actually motivated my question was to just better understand your musings. … I went back to your Oct 19 comments about hedging against a potential QQQ move up. You failed to mention anything about a heavy short position by BIG money and the explosive effects to the upside that could happen if something unexpected such as a one tenth of one percent cooling in inflation greater then expectation would cause! And of course when BIG money has to cover their shorts nothing short of a financial tsunami ensues as we’ve witnessed. Since that potential worst case scenario was in fact on the table (although far fetched) maybe the phrase “ you might strongly consider a hedge to my preferred scenario” …. otherwise when I read it on the 19th I saw it more of an afterthought, almost a cya comment. …. Like during your videos when sometimes you mumble an off the cuff afterthought with a chuckle. Going forward I’m thinking those are your little golden nuggets that really need a lot more consideration. … to your credit, earlier you did mention 352 on the Q’s was your all in level and at 367 FOMO got the best of me and I went big on SQQQ (not options) and suffered a 15% loss on my trade before cutting my exposure in half. I’m certainly a fan of your analytics, I just need to be more patient. Keep up the good work!

Sounds like an options trader’s question..lol. Lots of variable & potentials but my best guess is that VXX would be OTW or getting close to ~T4 (a rough target) around the time QQQ has solidly fallen back down below the downtrend line off the July highs (i.e.- last week’s breakout has clearly failed) and QQQ has fallen to around the 350ish level.

Just a guesstimate with many other moving parts, including but not limited to what Treasuries are doing at the time as well. One potential development that would increase the odds of that VXX/VIX trade panning out would be a nice gap down tomorrow (Thurs) on the Jobless Claims report as that would set up a potential Island Cluster Top in QQQ and/or all the other indexes… one of the more reliable reversal (i.e.- topping) candlestick patterns.