QQQ - swing puts, be patient

10 Ağu 2020

Review chart in detail - remember this is weekly. Yellow flags and dotted lines show RSI peak and directional volume buying at peak.
Green dotted line shows RSI divergence and higher prices before sell off, which is indicated with red arrows. Red line on RSI shows bearish turn. Red oval on DMI shows selling volume increase and buying drop.
Now whether this plays out in a similar manner, time will tell. First look for signs on daily chart, like stochastic moving below RSI, and then both going below 50. I like an entry for Sept. puts between 269-271, but you can also buy one or two at a time and build your position as you see confirmation signals.

12 Ağu 2020

Not

I sold my 8/21 puts yesterday for a profit. Based on weekly chart indicators I think today's rally will fade, so I bought 9/18, 250 puts. Around 271 is a great place to buy puts, based on 30min and daily charts. Risk is very low with a stop over 272, but since I have time in the trade I can use multiple exits and allow QQQ to move higher also if I think it will reverse downward.

12 Ağu 2020

İşlem aktif

Also - note inverted hammer candle forming on weekly chart, which cautions for a reversal after a run up. Keep an eye on this to see how the week closes.