Hi everyone. I finally decided to short QQQ, but it will be a very short term swing trade. I don’t want to hold it through major earnings reports (FANG stocks), which are in two weeks.
I generally do decent with counter trend trades (shorting in uptrend). Most of my counter trend trades are losses, so although I expect to lose money on this trade as well, but if the index does move lower, it’ll make up for many small losses.
If the index is above my entry ($337) by the close this Friday, I’ll exit for a loss. I’m also out if the index consolidates sideways (closes near the same price by next Friday).
Hard stop loss is at 343 (0.8% loss to account), and profit exit is at 325.01. Risk to reward is 1 to 2. I’ve highlighted what I think are the most likely scenarios in the chart below. Green lines are preferred scenarios and red lines I get stopped out or exit for a loss manually.
QQQ daily chart below:
Enjoy the rest of your week.