QQQQ Game Plan

Fujisan here.

Mole asked me to give a quick update of my game plan on Qs, so here you go.

QQQQ

1. Add on June 33/31 put spread today and tomorrow.  I’m expecting another drop early next week.
2. Close out 50% of the position around 32.06~32.12 area (I’m expecting a bounce here).
3. Hedge your position with 33/31 call spread or you can double up your call position if you like to ride wave b correction.
4. Qs will come back up to retest the lower trend line and 200SMA.  Close out 33/31 call spread upon the rejection of 200SMA.
5. Add on June 33/31 put spread upon the rejection.
6. Close out June put spread at 31.21.   If Qs comes down with much higher volume, this support may be taken out, so please watch out how it comes down.

Happy trading, everyone.

Fujisan.

UPDATE 2:13pm EDT: Okay, I’m a bit conflicted right here. The tape is starting to look pretty bullish and buyers are starting to step in. However, two reasons why this level ‘needs to’ hold:

First we have consolidated enough for a 4th Minute wave. If we push higher from here then my wave count is a bit iffy and it’s back to the old drawing board. Second – that channel on the SPX has been working thus far and the Cubes are now approaching their own upper boundary. If they both breach I’m afraid the bear gets it up the rear by the close.

Just FYI – if both channels hold then I’d recommend dipping into those delicious Fujispreads.

UPDATE 2:25pm EDT: We are at the Cubes channel boundary. I am adding more of those M33/31P right here.

Of course if we bust beyond that yellow zone the wave count is in peril. if we breach 33.90 on the Cubes it would invalidate it altogether – on the SPX that’s roughly 896.46. So, that’s probably a good stop exit point for us.

UPDATE 2:41pm EDT: Here’s the channel on the Spiders:

I’m getting a bit antsy here – be warned – this could easily turn into a stop run as things are looking pretty bullish on the Zero right now. I need to see the Zero start showing some weakness before I add any further positions. Watch the 898/899 mark on the ES, which are hourly RLs.

UPDATE 2:49pm EDT: FYI – the breadth on the SPX right now is around 4.75:1 going to the advancing issues. I just grabbed some SPY M89/87P spreads but am ready to dump those suckers if we don’t turn soon.

UPDATE 3:13pm EDT: I have added an alternate count, which basically implies that we are sub-dividing inside of Minute {iii} of (X) – which is a very common phenomenon:

The SPX breadth ratio is down to 3.4:1 advancing right now, a bit better but I am still not too happy. However, I have decided to hold my spreads into the close unless we see some ugly rally towards the bell which breaches 910.

UPDATE 3:36pm EDT: Hey, am I keep you rats out of trouble today or WHAT? 😉 Hey, share the love a little, will ya?