SQQQ Follow Up

Friday's IWM & QQQ Short are looking very interesting here and subsequent Trade Idea (Position Trade) QQQ Short / SQQQ long trade idea is doing pretty well thus far...I decided I preferred SQQQ on Friday because of the IWM divergences not being as noticeable as the Q's as I mentioned this morning with expectations they'd be picking up today.

 SQQQ intraday breaking out on some volume from the bull-flag-like consolidation since last Monday.

The move intraday looks a little parabolic and as you know I don't like or trust parabolic moves, but I do like the volume.

There has been a little correction since the parabolic move, but it we may get some more, in which case I think SQQQ would make for a very interesting second chance buy or add to.

Here are the charts for SQQQ (3x short QQQ- as the leveraged ETFs often give stronger, earlier signals than due the underlying asset they track-the QQQ).

 The 1 min intraday SQQQ looks as if it could pullback which wouldn't be any serious damage as it'
s only a 1 min chart and we have very strong charts for SQQQ, but as you know I don't trust parabolic moves like this one and a correction wouldn't be surprising  and therefore may offer a second chance opportunity or an add-to opportunity for any who might want to add to the position.

As you can see, there's no weakness on the 2 min chart so the divegrence above on the 1 min looks to be an intraday steering divegrence only as it has not migrated to even the 2 min chart which shows Friday's leading positive divegrence before today's lift-off.

I'll try to get SRTY in there as well, I need to get to several other assets and double check to make sure IWM/Russell 200 negative divergences are proceeding today as expected.

 SQQQ 5 min showing a shake-out which was a reflection of a broader market shakeout/,head fake move (in yellow) , but note the leading positive divegrence at that shakeout/stop run in SQQQm it was accumulated in fairly large size as the divegrence is leading positive and late last week's deterioration in the market/QQQ/IWM led to strengthening charts in the inverse ETFs as you see to the far right for SQQQ.

 The 10 min chart's overall relative positive divegrence is quite large and in the right area, stage 3 top area for the market's October rally/cycle and stage 1 (base) for the inverse ETFs like SQQQ, but recent action in 3C has been far more interesting, leading positive and specifically Friday with a huge leading positive divergence in a single day on a 10 min chart which is no small thing.

 SQQQ 30 min showing the negative divegrence (relative and then leading negative at the pivot high) as the market made its October lows and rallied of them. Remember the concept of where a 3C divegrence is first seen and price almost ALWAYS far surpassing that point, here it can first be seen around the $34.50 area.

And as to the longer term trend and probabilities or perhaps it's more accurate to say, "Big picture" probabilities, the SQQQ 60 min chart with a strong divegrence at the September lows for inverse ETFs like SQQQ (September highs for the broad market and decline in to the October lows) as well as an even more impressive 3C divegrence at the lows created by the market's October rally/cycle which we knew was going to be a monster rally, even when I warned it would be far stronger than anyone could imagine at the time, I didn't expect it to be this long (strong yes, but long no), which only helps to cement bullish sentiment which was our reason for the anticipated rally almost 2 weeks before it hit bottom in October and a good week before we had charts telling us the rally was coming.

In any case, the point of this long term chart and its divegrence is the high probability of a large upside SQQQ move which is our expectation for the broad market (down).