From Saturday's Weekend Update, Why This Week Matters: "To reiterate: A move down now, without making much more progress in these counter- trend retracements, is a trigger for new short positions via index puts or VXX calls." Any new positions should be taken with the expectation of a sizable market decline over the next 30-60 days, While the October 15th expiration still has three weeks to go, the bulk of the expected decline could take place during the last weeks of October. Accordingly any new positions to leverage the massive hit expected in the market should go out at least to Nov 19th (53 days). Also, QQQ is falling at about twice the rate of all of the other indices, so there is where I would focus new or rollover capital. The QQQ chart below uses the Fibonacci Extension Tool to identify potential targets based on the first leg down and subsequent 50% retracement which we identified this past weekend. While a break below 300 may appear just wishful thinking for QQQ put positions, that break is less than a 20% decline from current levels. The "Covid Crash" was 30% in 30 days. QQQ Nov 19th Puts (current) QQQ $362.00 = -8.20 -2.25% Nov 19th $350P (8.30-8.40) +54.9% Nov 19th $340P (6.14-6.16) +65.3% Nov 19th $325P (3.75-3.80) +67.5%
