I titled the Weekend Update, "Wild Week Ahead" and prescient as that was, we may have seen nothing quite yet. An AI app from China seems to have pulled the rug out of the entire tech universe, although prices have recovered off of deep overnight lows (Nasdaq was down over 5%). We anticipated the potential for a deep dive this weekend, with the following snapshot from the update: From Weekend Update Let's bring that chart up to this morning's selloff and review how our SQQQ calls for February are faring about an hour after the Open: There is nothing to do in the chaos left in the wake of this news event driven decline, so long as you are holding these Feb 21st SQQQ calls. If not, they still represent the best, most leveraged hedge against anything "worse case scenario" that may be coming in the days ahead. SQQQ Hourly SQQQ 5-Minute Taking out today's lows on QQQ (currently 510.53) would suggest the worst is yet to come and more Feb 21st SQQQ Calls should be added. Select from this table: If the lows are taken out, all prices will be higher. If market looks to be crashing (not the case, yet), consider the SQQQ Feb 21st $35C, currently @ $0.50, but in the case of new daily QQQ lows, will be twice that price. If the worst is already over, keep in mind that we also have the FOMC on Wednesday, and earnings pending in some big names this week, including AAPL. TSLA, MSFT and META. In other words, there are more shoes that can drop. Key QQQ levels: 510.53 (today's low print) and 499.70 (January low print). If either gets taken out, look out below.
