As I am writing this on Tuesday morning they are "buying the dip" again, taking the market up off it's Opening gap down. One of these days, this pattern will fail and fail badly. This trade is for that time, whether its today or, "next time." . Everyone needs to know what to do if and when that time comes. For reference sake, we are repeating a pattern that occurred in mid-to-late February, 2025. I've chronicled how we handled trading during that breakdown below. But first: Meltdown Strategy Two positions to be taken if it looks like the market is collapsing, especially toward the end of session. Here are the two triggers: (1) QQQ takes out its morning gap low @ 621.37 (2) QQQ or SPY making new daily lows in last hour of trading. In other words, new QQQ lows means entering first tranche of SQQQ calls; if new daily lows are being made in last hour of trading, add more. Without new lows, there is no rush to establish these positions, our time will come. If not today, then tomorrow. If not this week, then next. Wait for trigger. Most aggressive: SQQQ - Nov 21st Calls Slightly less aggressive: SQQQ - Dec 19th Calls Aggressive, but least time dependent SQQQ - Jan 16th Calls Last time this SQQQ strategy worked was in early 2025, with these three PRO trades: QQQ - First four months of 2025 Market took all of February, 2025 to make a top...but what a top it turned out to be. QQQ - Current 120 Minute If 621 is taken out, 615 is last vestige of support, but we can't wait that long to take positions. A break below 620 could very well lead to an acceleration down.
