Special Alert: QQQ Breakdown Going into the final two hours of the trading session there are a number of breakdowns occurring on my charts, with SPX and QQQ in particular are looking very weak. The market is due for a breakdown, and today is the first indication of it unfolding. QQQ Double Top Breaking down off of a Double Top Formation. QQQ Breakdown This chart says it all: Breakdown of support going back nine months and the first real indication of something deeper on the downside beginning to unfold. On QQQ close below $615 - Buy: QQQ Feb 20th $580P If taking this trade: Use a -50% hard stop that becomes 50% trailing stop once option is up 100%. January Rollovers Insofar as Friday is January monthly options expiration, let's review what expiring options need to be rolled over into Feb-Mar, if not done so already: Premium Service Rollovers - Just One If still holding the GLD $400C, we will be exiting at expiration and rolling over into Silver calls. My reasoning is simple: Silver has been outperforming Gold since last August and even more so since the turn of the year. We bought the March $100C on January 7th @ $2.53 and that remains the recommended call for rolling over. Aggressive speculators can go out to the Mar $120C. SLV March $55C These calls were recommended in the Nov 29th Weekend Update and are now so deep in the money that they are losing some of their appeal in terms of leverage. Consider banking half of your gains and rolling the rest into the SLV Mar $100C. Spot Silver Spot Silver targeting $100-$115 over the next six-eight weeks. SLV Mar $100C The O-T-M's, Mar $100-$110-$120 Calls, carry the best bang for the buck.
