The market, especially the Nasdaq 1000 (QQQ) is breaking down. The last "short" position we took in the PRO Service was VXX calls on August 10th, still slightly underwater. If you're looking to gain more exposure on the short side, QQQ puts are the preferred vehicle. QQQ 180 Minute QQQ is now $716.42 with a $715.92 low, extending the breakdown and trading near the session lows. The important development is that QQQ has not reclaimed the broken trendline; instead, selling resumed after the first drop. Momentum now favors: $715: immediate target $708–710: next meaningful support $700–703: possible extension if the decline becomes disorderly QQQ Sep Puts If the Q's weakness continues into the final couple of hours of trading, let's add downside exposure with the Sep $690 puts, a "just in case" position trade with still a month to go until expiration. Risk 50%. VXX 180 A breakout here, above VXX $20, would bolster the bearish case and merit adding to the VXX Sep $20 calls.
