Is QQQ ready to continue after a minor pullback?
On the 4H chart, QQQ has been in a trend up for the entirety of this year
reaching 42% YTD. Of late, QQQ has had a 2-3 day pullback correcting
a decent uptrend over the prior week. On the Relative Trend Index,
while the signal is below the mean line, there is all the more upside
and the overall trend is positive. The dual time frame RSI shows weekly
RS high and steady over 80 while the lower time frame of 3H as the blue
line fluctuating between support at the 50 level and 80 and presently
a 50 in the pullbck. I analyse QQQ as ready to continue its overall
trend up. I will take out additional call options for a strike of $385
to expire on August 18. Over the past day this option gained 33% and
had a bid/ask spread of about 1%. I will set a stop-loss of 10% while
anticipating a profit of 150%. Once hitting the anticipated profit before
the expiration date I will take one-half of the contracts off the table
and close the rest 1-2 days before expiration.
reaching 42% YTD. Of late, QQQ has had a 2-3 day pullback correcting
a decent uptrend over the prior week. On the Relative Trend Index,
while the signal is below the mean line, there is all the more upside
and the overall trend is positive. The dual time frame RSI shows weekly
RS high and steady over 80 while the lower time frame of 3H as the blue
line fluctuating between support at the 50 level and 80 and presently
a 50 in the pullbck. I analyse QQQ as ready to continue its overall
trend up. I will take out additional call options for a strike of $385
to expire on August 18. Over the past day this option gained 33% and
had a bid/ask spread of about 1%. I will set a stop-loss of 10% while
anticipating a profit of 150%. Once hitting the anticipated profit before
the expiration date I will take one-half of the contracts off the table
and close the rest 1-2 days before expiration.
Trade active:
I fully expect a 25-point basis rate hike which is already baked into the markets at large upon the FOMC meeting to have no effect on this index trade overall.