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Here’s the weekly chart of QQQ. I suspect we will get lots of volatility next week as a new short term trend begins. My plan to short near 192 did not happen since the highest the index made it was about 191.8. I’m considering shorting near 189 or 190 with a target at 180 instead of the original low 170s. This trade would be a significantly shorter time trade since the index doesn’t have to move as much.
Since I sold my FB shares in my Roth IRA at the start of this week, I’ve been thinking of buying PSQ – the inverse ETF of QQQ – in my Roth IRA. I normally prefer going short on indexes rather than buying inverse ETFs, but the problem is you can’t go short in Roth IRAs.
The reason for doing this trade in my Roth IRA instead of my regular trading account is to avoid taxes. Trades in Roth IRAs don’t have capital gains taxes – making them ideal for situations like this.
Above is the weekly chart of PSQ – which is supposed to be identical to QQQ but upside down.
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