027. PIGGISH PLAY - Short QQQ (Nasdaq ETF)
Updated
This damn Nasdaq...
Sick of this thing already.
The Nazzy, and its faithful derivatives, have been on a mission to get to whatever fib targets it was programmed by the universe to get to since early 2020. The reason I believe that this index is particularly in pin-seeking mode is because of the price level it stopped abruptly at during the September 2020 reversal. That is, it touched the 1.618 external retracement of the entire selloff range from Feb 2020.
It was uncanny - especially since there was no particular event, rhyme, or reason for the arbitrary reversal before Labor Day weekend. Now it appears that the same thing may happen with the only objective differentiator being the name of the holiday.
It has been hypothesized that the 4.236 Fib extension of the first "vibration" (i.e. impulsive energy source) of any trend will be the exact price level where the trend pivots in a significant way. While I do believe in such things, I would not make the basis of a Pig-Play something that I have not observed empiracally many times over already. This vibrational pivot does often work when trends have proven their respect (so-to-speak) for key Fib levels.
Hence, I am short QQQ with the following Pig Specs:
- Lead Position: BUY QQQ PUTS - Strike Price: 330.00, Expiration: 03/12/2021
- Offsetting Position: BUY TQQQ CALLS - Size: 0.333*Lead Position, Strike: 110.00, Expiration: 03/02/2021
The nice thing about the Q's is that they are easy to strangle effectively using the 3X leveraged version.
-PigOnaQQQuestforVengeance
QQQ
TQQQ
NDX
IXIC
CURRENCYCOM:US100
Sick of this thing already.
The Nazzy, and its faithful derivatives, have been on a mission to get to whatever fib targets it was programmed by the universe to get to since early 2020. The reason I believe that this index is particularly in pin-seeking mode is because of the price level it stopped abruptly at during the September 2020 reversal. That is, it touched the 1.618 external retracement of the entire selloff range from Feb 2020.
It was uncanny - especially since there was no particular event, rhyme, or reason for the arbitrary reversal before Labor Day weekend. Now it appears that the same thing may happen with the only objective differentiator being the name of the holiday.
It has been hypothesized that the 4.236 Fib extension of the first "vibration" (i.e. impulsive energy source) of any trend will be the exact price level where the trend pivots in a significant way. While I do believe in such things, I would not make the basis of a Pig-Play something that I have not observed empiracally many times over already. This vibrational pivot does often work when trends have proven their respect (so-to-speak) for key Fib levels.
Hence, I am short QQQ with the following Pig Specs:
- Lead Position: BUY QQQ PUTS - Strike Price: 330.00, Expiration: 03/12/2021
- Offsetting Position: BUY TQQQ CALLS - Size: 0.333*Lead Position, Strike: 110.00, Expiration: 03/02/2021
The nice thing about the Q's is that they are easy to strangle effectively using the 3X leveraged version.
-PigOnaQQQuestforVengeance
QQQTQQQNDXIXICCURRENCYCOM:US100
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Found this supporting Diamond Bottom (rare chart pattern) on the 4-Hour:Trade active
For the more experienced/aggressive traders - am entering 3/4s of full put position now. Reason is that the Dow appears to be finishing up a very possible final 5th ED pattern that is likely to finish today/tonight.
If I have to cover tomorrow, so be it, but the odds are very favorable here.
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This should be good today..Trade active
That'll do just fine. Semiconductors may have topped out, which is a lead cause to all the sudden commotion.Keep an eye on AMD for whipsaws/reversals/etc. while in this trade.
Good luck!
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Looking to take 3/4s off for some pretty steep profits at the 0.5 - 0.618 Fib zone that is mapped in the original idea.The reason why I am making a point of this iteration of profit taking and subsequent rollout is because I will not be rolling out this time around. In other words, 3/4s of my current position will be closed out without the intention of extending out the trade. This process of buying next month's (week's) puts (calls) at an even lower (higher) strike is a strategy I use for most of my trades and is the essense of "position trading" is from a short-term options perspective, IMO.
The remaining 1/4th of the position will be held as either a hedge for whatever tech companies offer the best discount at the end of this selloff.
Hope you all made money on this one, since it was one of the more piggish plays out there.
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Adding aggressive position today - puts (309, 05/14)If this closes ath this week, will close it and go long.
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QQQ Short Play got triggered again. Setup is same as above, targets are unchanged.
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