Tuesday, April 8, 2014

Looking to Add to QQQ Calls

The QQQ Calls opened yesterday are already at a decent gain, I've heard from several of you who took gains this morning and are looking for a new entry.

I'd like to add a little bit to that position, but as mentioned yesterday, I'd like to add any subsequent contracts with a May (standard) expiration, probably around a strike of $85.

To me the Q's still look the best, the SPY doesn't have a 5 min positive divegrence like the other averages, but the Q's goes all the way out to 10 min.

 This is the QQQ 10 min leading positive divegrence, you can see the leading negative to the left and what that did to price and the leading positive to the right, we're still in a micro cycle stage 1 base while being in the short term cycle stage 4 decline and just entered the February cycle's stage 4 decline.

This is why the bulk of positions are leaning short heavily with only a few leveraged positions long like the QQQ calls.

Intraday the 1 min is in line after an earlier positive divegrence so I feel comfortable that there's still positive construction on this little micro base, but it's more than enough with the leverage of options, probably fine with leveraged ETFs too like QLD or TQQQ if you prefer.

 The 2 min chart is lagging a little and this makes me think an intraday pullback is possible if not likely, that's where I want to add to a QQQ Call position, on a pullback, the uglier the better.

If you're interested, other than setting alerts, you should keep an eye on the intraday NYSE TICK, I drew trendlines around the 1 min chart, a dip below the channel which looks like it will happen would also give some early warning on a pullback.

So that's what I'm looking for at the moment as well as just checking over the assets I'm interested in as far as longer term positions, likely primary trending positions and a few initial momentum swings (all shorts, but we're not there if we have a bounce coming).




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