SPECIAL NOTE: This update was posted on the website ninety minutes ago. Since then the market has sliced through our support levels triggering the recommended trades, SQQQ calls and IWM puts. More on these ominous breakdowns in the Weekend Update ----- Where I would typically throw out a new long position to carry into next week, these particular charts are troubling, so let's not take on any additional risk going into the last week of February: DJI While the DJI was horizontal just below major resistance, the past few days has seen it start a directional move to the downside. If it accelerates we will want to start accumulating short positions, with puts in SPY and/or IWM and/or SQQQ calls. QQQ QQQ is following the DJI lower and a break below 530 will trigger new inermediate term positions in SQQQ Mar 21st calls: On any close below QQQ 530, or break below 528, start adding SQQQ Mar 21st $28- $30 calls. Support is at QQQ 500. SQQQ A break back into sideways channel projects an SQQQ run to 32-34. IWM - As bad as DJI and QQQ look, this looks even worse: IWM could drop 20-40 points...and fast. Good insurance, "just in case."
