I have found that about 40% of new QQQ short term down-trends end within 5 days. So I buy a little SQQQ on Day 1 and increase the position slowly. SQQQ has now closed above its daily 8exp and 21exp averages.
Blog Post: Day 30 of $QQQ short term up-trend, it may end Monday; 64 US new highs Friday and 176 lows; GMI close to turning RED, but I wait for signal–do not jump the gun
I will buy a little SQQQ if the QQQ short term up-trend ends on Monday. Most ominous is the fact that SPY has now closed below its 10 week average. Also, the 10.4 fast weekly stochastic has now crossed below the slow stochastic for SPY, DIA and QQQ. A weak day on Monday would likely reduce the GMI to 2 (of 6). Two consecutive days with the GMI below 3 would turn it Red. All of these technical indicators are picking up a possible change to down in the longer term trends. Many indicators are oversold and the market might hold and bounce. Wait to see!!!!
Blog Post: Day 29 of $QQQ short term up-trend; 83 US new highs and 132 lows; QQQ is right on support–Friday’s close should provide an idea where Mr. Market wants to go, see chart
QQQ is right on its 30 day average(red solid line) and there have been two black dots, indicating an oversold bounce. The 10.4 daily stochastic is also below 20, the level where this index often bounces. Note also the higher volume on Thursday’s advance. Friday’s close should give me an indication whether the QQQ short term up-trend remains intact. Then it will be time for me to buy TQQQ or SQQQ. The key is to remain agnostic and to ride the market in the direction it wants to go.
