Our intraday trading models have been triggering short-term Sell Signals over the past few days and the biggie, the Intermediate Term Daily Model for QQQ (shown this weekend and again below) is just not there yet, but could trigger at the close today. On the pattern recognition side of trading, the chart below shows price has fallen back into the downward bear market channel coming off of the Nov 22, 2021 Nasdaq Top, the point at which we consider a longer term bear market to have begun. So long as price is in this downward sloping channel, bearish leveraged positions are recommended, either ETF's (SH), leveraged ETF's (SQQQ) or index puts as per our trading recommendations in this service (See new recommendation below). QQQ - Intermediate Term New QQQ Oct 21st Expiration Recommendation The previous Sell Signals in this nascent bear market have been good for 40-50 QQQ points to the downside over the course of 6-8 weeks from entry, This next signal will be coinciding with a Wave 3 down and come in front of the Sep-Oct seasonal crash window. Accordingly we will be giving up some time leverage by going out to Oct 21st expiration, with a just-out-of-the money strike, currently QQQ 310 (12.00-12.05). If things go as expected in the next few weeks, we may be rolling over from a then deep-in-the-money strike after labor day weekend. This Put is up 32% today on a 2.5% decline in QQQ, about a 12X leverage payoff, not bad for having 61 days until expiration.
