Tuesday, December 16, 2014

Leveraged ETF's TQQQ/SQQQ

I'm still trying to answer the question whether I'd trade anything long here for a short term trade, what we call a "Piggy back" , especially if that meant closing a core short position to do it.

Thus far looking at TQQQ (3x long QQQ) and SQQQ which I have a long position in (3x short QQQ), I would have to say I would not change anything in resounding fashion.

 TQQQ with a minor 2 min, 2 or so day positive divegrence,  this looks more like a correction move if that than anything else and I would never close a core position over a corrective move, the last time I did (AAPL) I missed the biggest trade in AAPL in years.


 There's also a slight 3 min positive as well in TQQQ

As a reminder of trend and probabilities, this is TQQQ's 10 min chart since the accumulation at the October lows through present's deep distribution, but if this weren't bad enough...

This is TQQQ's 60 min chart. Any long trade here would be against very high probabilities.

As for the inverse, SQQQ long (3x short QQQ which I personally own)...
 Like TQQQ, the divegrence is only minor on a 2 min chart and only  several days, it may be more than enough to accomplish the goals re: the IWM head fake,  but I would not trust a long like TQQQ to hold it together and the probabilities of a surprise morning gap down would be very high.


 SQQQ 5 min is perfectly in line with its uptrend as the Q's lose ground.

And compare the 60 min 3C chart here vs TQQQ above.

That answers the leveraged QQQ trade question.

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