First day of QQQQ short term down-trend
By my definition, the QQQQ up-trend ended Wednesday, after 52 days. A new short term down-trend has begun. I own some call options on TYP, which rises 3X as much as tech stocks fall. If this down-trend lasts 5 days, I will begin to add to my position in TYP. It is still possible this decline could end in fewer than 5 days, so I will wade in slowly. T2108 is at 38%; as it gets closer to 20% I will look for a bottom. The longer term trend (weekly) of the QQQQ remains up.
Comments ( 3 )
Carlos added these pithy words on Thu, 5-6-10 at 9:23 amHey Dr. Wish, quick question, why 5 days ? Is that something you have seen in past corrections ? Why not add when it falls below a certain moving average ? Thanks for the blog !!!!
Ewish added these pithy words on Thu, 5-6-10 at 1:15 pmI have found that if a down-trend lasts 5 days, there is a greater likelihood it will continue.
Hector Herrera added these pithy words on Thu, 5-6-10 at 3:48 pmHello, thank you for thge blog, it is great. I have a question, why buying call on the TYP instead of owninig the ETF outright. Are you looking to leverage yourself behond the 3x the ETF is already leverge?
Thank you again
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