Momentum Trades: QQQ Near-Term Short

Been a while since my last post but back at it again. My intent is to provide the broad market review 3-5x per week and one stand alone assets during the same time period with some crypto sprinkled in occassionally. These are quick day trades / swing trades.

Strategy: ETFs (QQQ/SPY) I like to use options for swing trades. Strike price near the money 2-3 weeks out with a tight stop. Given the market has frequently hit ATHs, there is no overhead resistance so caution and tight stops are key. Pre-set close at 10% gains yields med risk. MACD (5/20 w/9 signal) in most cases is the leading indicator. The EMA crossover 5/20 is the trigger. 1 hr chart is mostly the go to chart with 30min and 4hr charts available to monitor shorter or longer time periods.

QQQ: Today QQQ MACD is crossed down giving an initial indication that the upper-ward momentum is slowing. Look for the EMAs (5 below 20) to cross for trigger to enter.

Likely: I lean towards more downside as indicated by the MACD but we should wait on the trigger

Caution: This market has been resilient to the upside. A breach of the ATHs signals a wait and see moment and if you are in short, exit.