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The QQQ has broken support (see daily chart below).   I am going to cash or short.   I may be wrong but I would rather conserve cash for the next rally.   It would be a major sign of weakness to me if the QQQ closes today below 64.87. If it looks like it will I will close out my remaining TQQQ. Too many of the market darlings I follow have already been wounded, including ISRG, CMG, AZO, PNRA and AAPL. My trading gurus have written that after the leaders fall, the rest of the market eventually follows.

The QQQ held support on Monday but the short term up-trend is in jeopardy.   I trimmed back my TQQQ, increasing my hedge towards the down-side.   This next two weeks may be very difficult to trade.   Time to be very cautious.

On Thursday, I bought some January call options on the bearish leveraged ETF, SQQQ to hedge my long position in the bullish leveraged ETF, TQQQ.   With the news that “Plan B” has failed, the index futures look very weak.   My hedged position should reduce any losses resulting from a decline in TQQQ.   I hope my readers have also been only cautiously bullish……..

While I would not buy any individual stocks right now, one of the 16 stocks to come up in my TC2000, New High with Good Fundamentals Scan, Thursday night was LAD.   It turns out that LAD hit an all-time green-line high on Thursday.   This a a break-out above the high reached in 2006. Any stock that can come through a tough market like this and go to a new all-time high is worth researching.   The weekly chart below suggests to me that this a a cup-with-handle break-out.

The weekly Guppy chart below also shows LAD to have an RWB rocket stock pattern. Click here to read this interesting article   about LAD.

If you want to learn more about how I analyze stocks, see my free Worden sponsored Houston TC2000 webinar by clicking here.