Earlier this morning I sent out a "Into The Close, Calling A Top" post to the Blue Line PRO Trading group. In the spirit of, "What's good for the goose is good for the gander," on this, yet another in a long line of birthdays for yours truly, I am sharing that post with all...just in case. Allan Into The Close: Calling A Top Well, I just couldn't let this market close for the July 4th holiday without one stab at nailing the top, or near top, of a multi-year bull market. In this case, the most vulnerable sector is the Nasdaq and QQQ in particular. Let's go out to August as per our, "next month," rule and of course, way out of the money puts, because there is so much air below this market, Nasdaq in particular. QQQ Daily Edit: As of mid-session the Q's have just about broken the second trendline, triggering the "double-up" advice from below. A little different looking trading chart, with multiple support and resistance levels marked with trend lines. As the Q's drop through the first support line, we enter an initial short position with Aug QQQ $650P @ 7.00...or thereabouts. Risk 50%, in search of 200% or better in a July-August swoon. Note also, the next level of support, coming up today at about 714-715. If level also that is broken, double up on the puts. QQQ August Puts As of mid-session, the Aug 650P is trading at 8.70, up from the 7.00 level where it was when the PRO update was posted. If I finally got a top right, the Q's will be trading in the 500's in the next 50 days, placing the 650P 50 points in-the-money...and then some.
