QQQ Stock – QQQ SIDEWAYS FOR FOUR(4) WEEKS … TECHNICALS SUGGEST IT WILL ROLL OVER SOON : options
I have been selling overhead spreads in the QQQ for credits for what feels like forever. Making coin, but not a lot. This week my mind has taken a shift toward more bearish bets. 10y yield is stubborn and at some point will pull money out of the market. Now we have a hedgie go under. The market never reacts right away, that would be too easy. The sideways action has been milked I’m sure. We don’t have to move out of the box. However, I’m starting to feel we will.
My target for the move is Prior to APRIL 6 …
Currently I hold some Bearish Credit Call Spreads in RCL USO QQQ .. Today I added MTN in a bearish put spread to my existing play in RCL .. Both expire May 21 … I have been strictly playing the QQQ and some carefully picked stocks on the weekly. Now I’m ready to take some bearish plays to May.
The first peak in QQQ September pushed above 70 rsi. The second peak in Feb failed at 70 rsi. This is not the first time I have seen this lead to a multi month sell off. If you go back to March 2020 you can see the weekly went all the way to RSI 30 before bouncing
LULU just posted decent earning and the stock is declining. Many on WSB were buying up BB prior to earnings and my charting points to $7.50 … Get the feeling we are seeing the old “unload on to retail” trick here. I’m not saying we crash. I’m just saying that my slightly bearish plays of selling Bearish Credit Call Spreads is now leaning to the purchase of some premium with Bearish Put Spreads. So, my plays are going to be more reliant on the QQQ falling to at least the $290 mark soon.
I SAY THE QQQ BREAKS 300 ON A WEEKLY CLOSE before APRIL 6th … Best of luck all.