Tuesday, May 26, 2015

Taking QQQ June 5th $111 Puts Off the Table For Now

I may come back to them, but being these are an earlier expiration meant for a shorter term move (June 5th), I think I'll take the gain as they look to like they are running out of intraday steam.

 The QQQ Tracking position in June 5th puts ($111) at a 60+% gain this morning...

 The 5 min , stronger chart suggest more near term downside with the leading negative 5 min divergence (red).

However intraday the 2 min chart seems like it's looking for an intraday toe-hold and I'd prefer to take the gains and re-open the position on an intraday bounce.

Look for the intraday TICK downside extremes or channel break intraday and a volume spike in the Averages' on an intraday low that forms a bullish candle on one of the intraday timeframes on RISING volume-this will likely be the intraday capitulation low.

For now though, I see no reason not to take gains such as this off the table and look for a new entry.

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