Hi S2005,
When I get a chance I want to carefully review the support/resistance levels because at the time I went short, moving averages were in a different place, as were the BB rails.
My feeling right now is $36.50 is about as low as QQQQ can go before resuming the long-term uptrend, but I'll look more closely and get back to you.
Short is the place to be, very clearly. Even if there is upside tomorrow, I will not cover. The charts and technicals are quite consistent---there is significantly more downside ahead.
But that said, I think the magnitude of the downward momentum will ease, and QQQQ will kind of chop downwards from here. That way, when the reversal occurs, it will not be obvious, and most will miss it entirely.
Indexes like nothing better than to fool most of the people most of the time, and they are exceedingly good at that.
Not sure what your position is, exactly.... you say you sold QQQQGI against GL? July 35 and 38 calls? So you are net long???
But the bottom line here is that if I were you, I would hang tough with a short position even if there is a bounce tomorrow, and even though that would mean holding through the weekend.
T |
