Yesterday's long positions in URTY (3x long IWM) and TQQQ (3x long QQQ) also seem rather well timed. With volatility picking up (which means the moves up and down are likely to be exaggerated), I felt a little less leverage would be a better solution right now to ride out consolidations, possible pullbacks, etc while remaining not only hedged, but also making extra money on top of the hedge.
Excess leverage and volatility can be a lotto ticket, but I'd rather have consistent winning positions than a lotto ticket.
Here's the update for the underlying positions, QQQ and IWM and what I saw yesterday that I wasn't sure about, but felt strongly enough about it to go with the 3x leverage over the options.
IWM 1 min is in line so far this morning, putting URTY at over a 3% gain this morning.
The 3 min IWM chart is leading so the near term looks good here for more upside.
This is what intrigued me yesterday, but I wasn't sure if I could trust it, that's a pretty big positive divergence on a 15 min chart, but considering volatility, I think this could be a true signal; if so then I don't want options as they wouldn't survive the entire move and thus not work as well as a hedge. Additionally with the increased volatility, there's no need for the increased leverage which is selling at a higher premium due to the volatility.
Longer term though, I'm not fooled by a 15 min chart, this 30 min leading negative divergence is the trend's back broken.
The Q's look like they could consolidate a bit in the area, TQQQ is up over 2% this morning so far.
Just beyond at the 3 min chart, like the IWM it looks like there's more upside in the near future (as in today).
Again that 15 min positive divergence that wasn't fully developed yesterday and I wasn't sure if it could be trusted, today it looks much more solid.
Again, the 60 min chart shows the trend's back is broken.
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