Tuesday, May 20, 2014

SQQQ Position Update

SQQQ is a 3x leveraged UltraPro Short QQQ that I've been holding as a long in the trading portfolio, it's at a very minor -1.68% loss (considering it's 3x leveraged) which is not a concern.

Given this large topping pattern across the various averages, I have no problem holding SQQQ here, I would have no problem entering or adding to it here, although there may be a slightly better entry in the coming days.

I think SQQQ is more interesting as far as its charts go not as keeping up with the long position there, but getting a feel for the averages themselves as leveraged ETFs tend to give signals earlier than the averages in many circumstances.

 This intraday 1 min chart with a slight negative fits with the averages that I just updated, thus there may be a slightly better entry in to SQQQ, but at this point it's really semantics to a large degree.

 The 3 min leading positive says a little more about the state of the Q's than it does SQQQ, although that is the long position.

 This 5 min SQQQ relative and then leading positive at a "W" like formation also is an interesting chart, again it tells us a lot about the Q's and the broad market, although the position is SQQQ long.

 The leading 10 min chart at the same "W" formation is also telling, there's a clear pattern of migration through longer term charts and stronger and stronger recently.

This is a 30 min, so the divegrences are migrating fairly far out.

And this is a 4 hour leading positive which is a large signal as far as the underlying trade.

I'll continue to hold SQQQ, I would add to it at some point if I had room, but either way you look at it (from a SQQQ long trading position or as an indication of the health of the QQQ, it tells us quite a bit and this matches up well with confirmation from the averages in similar timeframes as well as Index futures).

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