Tuesday, October 29, 2013

Trade Ideas: QQQ / QID / SQQQ

I already have enough exposure for trading position purposes to the market via SPXU and SRTY, but if I were looking at adding a position (keeping in mind we do have a wild card event tomorrow afternoon that could increase risk, reward or have no effect) I'd be looking at the Q's short, I'd prefer a leveraged ETF like the 2x leveraged short, QID (long) or the 3x leveraged short SQQQ (long) as I'm still not convinced on duration yet.

Here's a quick look, keep in mind the 2 leveraged ETFs have totally different volume and management companies so charts that confirm are doing so because something is going on, not because they are tracking the same in price as the Q's.

QQQ
 This is just intraday, but there was distribution on the gap opening and keep in mind this is an intraday view, not a trend view.

 The QQQ 5 min chart has a progression that makes sense starting around the 18th and going especially negative (leading) as the range tightened up.

SQQQ, the 3x leveraged QQQ short shows the same leading positive activity (remember this is the inverse of the QQQ) in a tight range.

And again over hear.

The 10 min chart is also leading positive, it was relative positive in early October leading to a small move, but this current divegrence is much bigger.

QID is the 2x leveraged inverse ETF, again activity around the 18th, and leading positive confirming the QQQ leading negative and SQQQ leading positive

The 5 min chart also leading positive in a big way after a gap under support and a tight range.


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