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Strategies & Market Trends : Playing the QQQQ with Terry and friends.
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From: Walkingshadow9/9/2010 6:25:40 PM
1 Recommendation   of 4814
 
Now I am partially short, FWIW

One of my sell limits (TQQQ) triggered at the open today. Later, I flipped that over to a short position in SQQQ, partly because I saw evidence of technical weakness, and partly because there has been a short-term buildup of selling volume. I believe the latter will put downwards pressure on the index over the next few days, but there seem to be buyers on the dips. Also, in just 8 sessions, the index has advanced 6.8%. That's a lot for QQQQ. So the index has come too far too fast and is overdue for some profit taking.

So basically I have a strangle on QQQQ now, since I have long positions that will trigger profitable exits if the index advances a few percent and short positions that will trigger profitable exits if the index declines a few percent. Either way is okay by me, and the only real concern is how far the index can move to the upside over the next several weeks. I think there is plenty of room for the index to drop, and many things favor a sustained bear market developing soon.

But for now, I don't think we have run out of steam to the upside. So....I anticipate a bit of a pullback, then the rally should resume, and should approach $48.50 in the next few weeks.

T
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