Thursday, September 13, 2012

QQQ / SQQQ position

I lime the idea of the SQQQ long as it's not overwhelming leverage, but can make even a short move worthwhile. It's also a fairly suitable replacement for AAPL which is not quite where I want the 5 min chart.

The NASDAQ futures and the QQQ signals look very similar and as mentioned, at this area, there's a lot less risk than at a lower level in the QQQ (higher for SQQQ).

 While I'm interested in any divergence, I'm more interested in the divergences after the F_O_M_C, the NASDAQ mini Futures (NQ) have a nice divergence and the issue has given good signals.

 While the QQQ 1 min trend is about as ugly as you get and added nothing today, I'm more interested in post F_O_M_C and in particular the divergence right at the 2:27 high which was the time the question was asked of Bernie about inflation. I am fairly certain this isn't coincidence as I was watching the actual GLD chart and time when he was asked the question and saw immediately GLD /gold futures didn't like the question and/or answer, it may have revealed the flaw in QE3.

 QQQ 2 min so there's migration of the divergence.

And even the 5 min leading negative in a fairly short period of time, about 1.5 hours.




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