I already posted the charts of the Q's in the last post and had mentioned SQQQ and SRTY (3x short QQQ & IWM ) this morning as they grew to look more and more timely, I have little doubt the strategic position and probabilities are already set. While I have also looked at the 2x leveraged ETFs for QQQ, I find the higher leveraged ETFs tend to give better signals earlier which I suspect is a function of the necessity of the greatest accuracy with the increased leverage. The other charts give confirmation, it would simply be a post with 30 charts if I posted all of them.
SQQQ long is one of my personal positions, already filled out.
I'll use SQQQ 3x short QQQ and TQQQ as a confirming asset. Even though price will move almost exactly opposite each other because they are both bases on the QQQ, their volume trends and changes in them are nothing alike and that's why confirmation among multiple, but similar assets with 3C is so effective, it's not price that gives them confirming signals, it's underlying trade as managers of the ETFs only seek to match the underlying's price, they have no control over the supply and demand dynamic presented by volume.
Remember, SQQQ is 3x short QQQ and TQQQ is 3x long QQQ, for confirmation the two should have nearly opposite 3C signals/divergences.
First with the strategic or bigger picture...
TQQQ (3x long QQQ) 60 min with the last negative divergence at the September highs area, which was stage 3 top/distribution of the August rally.
As we had seen well over a week in advance as EVERYONE was raging bearish, there were positive divergences growing in to the October lows. I don't know if you recall sentiment at the time, but not only could no one imagine such a strong rally (which is what we called for), but no one could imagine even a bounce with comments often along the lines of, "This market won't even see a corrective bounce"?
SQQQ 60 min shows a large positive divegrence at the September rounding bottom/range with a move significantly higher, almost no distribution of this caliber at the reversal and a huge leading positive divegrence since.
This is almost perfect confirmation vs TQQQ, except to say that there was very little distribution at the top that reached strong levels such as the 60 min chart, which leads me to believe others decided to hold SQQQ for the larger picture/term and have only added to that since.
TQQQ 10 min at the October lows with accumulation and in to distribution as most of the market is in stage 3 top.
SQQQ 10 min showing some smaller size distribution at the October jighs as it is an inverse ETF and a leading positive divegrence in to the decline.
On the more important (to me right now) shorter timeframes (for timing)m, the 5 min chart which is still a strong and respectable timeframe, being the fastest timeframe that still seems to show institutional activity intraday, this TQQQ chart not only has a negative divegrence at a head fake / FALSE BREAK OUTm but this week it has seen a very different change in character.
SQQQ 5 min also has seen a change in character that included a positive divegrence at what was a head fake move, but here a stop run which appears to have been aggressively accumulated and the last couple of days seeing a dramatic change in 3C's character, leading positive.
TQQQ 3 min intraday shows in line during the Black Friday week
which I welcome seeing as it is showing the shorter term steering charts moving with price as there was an objective to the week's trade, it's like calibration, thus when we see a negative divegrence like the one to the far right as well as the head fake move which is leading negative BEFORE price moved down, I take this kind of chart even more serious.
The key and reason I bring SQQQ up now is the short term charts, timing charts making strong and distinct/confirmed moves, similar to last week's head fake move up leading to Monday's carnage.
And SQQQ moving in line intraday this week only to be leading positive in a large way today, this looks like very good entry timing.
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