QQQ has been trading along these levels listed on the chart. After the face rip short week of Christmas to the end of the 2021 Calendar year, I think that there may be some profit taking on the Q's.
Some traders dislike MACD, but as we can see from the histogram the trend is starting to weaken. There is not much support underneath the current levels of QQQ....
7/31 Long Call/Put spread on IWM
Longer dated probably would be better, but I am confident that the markets will react to the current levels. The bear in me is hoping for another corona fueled sell off for the IV, but I am also hedged long in case things do not go my way.
Hope I don't kick myself later for only going 2 weeks out. May roll this position into...
Curious to see if IWM fails this level. It has broken bottom of wedge, and now failed a back test of that bottom of wedge on the daily. 139-138 area of support may come into pay and price action may continue in a bullish pattern. trendline from the daily extended may also be an area of support (circled)
good inflection point to watch with broader market moves....
IWM still holding below the bottom of the broadening wedge. MM will try to push up with GDP and jobless claim news. If GDP + jobless is is less of a change than last quarter / period I can see bulls stepping in here.
Spy continuing to consolidate on this trendline, looking for market open. If it breaks below puts are in order, but waiting for MM backtest for confirmation is the safer move here.
As of writing SPY is right on a trendline that has had numerous interactions since Feb/March. Very curious to see what happens here with COVID cases surging. Will the MM and Fed be able to prop up this market?
I am long put 3 x IWM contracts into COVID fud and this range being formed on IWM. Small cap seems to suffer the most during covid uncertainty; tech is too strong to be shorted. I am confident that we will see more downside but if this range is broken to the upside I may switch long. Mainly dependent on whether COVID cases continue to proliferate or if the USA...
