TQQQ hit 54.84 on a spike at 10:30 from 55.09. I bought the reversal and it rallied to 55.95 at 11:00 and fell back to 55.57, then held .60s and low .70s. When I looked at QQQ, I realized there was no real support line for it anywhere. The steep support line was touched Friday. They rallied for a few minutes from a gap open lower and then fell hard. Sell was the plan as was buying TQQQ near 55. As I thought more about QQQ, I decided to sell TQQQ on a stop at 55.50. I added new trendlines for QQQ yesterday but there's no strength yet to the upside, so best to remain on the sidelines and wait for some strength. I took UVXY for a trade yesterday and am in again today. I was early selling SOXS from Friday, but still got a decent gain and got gains with SOXL and TQQQ, so I'm content to have not fumbled the ball this time.
What's your breakeven price? Ideally you already sold the Oct. 13 buy on Friday off the open at 59. Active traders may have bought it back around 57.50 and should have sold when it started down after 2:00 for a 2% gain or better. If you're still holding from Feb. 13 or Feb. 1 or Jan. 8, then you've put yourself in a difficult position. You're likely kicking yourself for not selling at 61 on Monday, like I recommended. If it falls to support at 56.60 or 55.00 and you sold at 61, it's an easy decision to watch to buy. If you're still holding, then it's a classic position that I always try to avoid. The best option is to treat it like a new position and get back to trading according to the strategy, which would be buying support, selling if it breaks lower and holding if it rallies. If it gaps lower on Tuesday, I would be ready to exit quickly if it continues lower and then be ready to buy if it rallies, just like those who sold on Friday.
Your chart says buy 13FEB at 55.80 or 56, which I agree with based on the support trendline. I don't see any reason to have sold this position yet. It did not reach 61 or even 60 after buying on the 13th. It did not reach any upper trendline or come back to support yet. So the question is, do you sell at 56 to breakeven or allow it test the lower green line which will be around 55.00 tomorrow? I don't have any TQQQ, just hypothetically.
My decision to sell on Fri. Feb. 16 was based on following my strategy of acting early in the day, and there was a clear trendline on the 15min chart that was broken. Also, if it had pushed higher than Thursday's high, I might have been less inclined to sell quickly. Now, there's a downtrend line which intersects with the uptrend line around 57.40 on the hourly chart. One or the other will have to break soon. If I was still holding from 56, I would sell for breakeven and then watch to buy if it holds support at 55.
TQQQ hit 54.84 on a spike at 10:30 from 55.09. I bought the reversal and it rallied to 55.95 at 11:00 and fell back to 55.57, then held .60s and low .70s. When I looked at QQQ, I realized there was no real support line for it anywhere. The steep support line was touched Friday. They rallied for a few minutes from a gap open lower and then fell hard. Sell was the plan as was buying TQQQ near 55. As I thought more about QQQ, I decided to sell TQQQ on a stop at 55.50. I added new trendlines for QQQ yesterday but there's no strength yet to the upside, so best to remain on the sidelines and wait for some strength. I took UVXY for a trade yesterday and am in again today. I was early selling SOXS from Friday, but still got a decent gain and got gains with SOXL and TQQQ, so I'm content to have not fumbled the ball this time.
Based on TQQQ hourly chart, would you currently have a breakeven stop, or allow a retest of the dark green line at 55.00?
What's your breakeven price? Ideally you already sold the Oct. 13 buy on Friday off the open at 59. Active traders may have bought it back around 57.50 and should have sold when it started down after 2:00 for a 2% gain or better. If you're still holding from Feb. 13 or Feb. 1 or Jan. 8, then you've put yourself in a difficult position. You're likely kicking yourself for not selling at 61 on Monday, like I recommended. If it falls to support at 56.60 or 55.00 and you sold at 61, it's an easy decision to watch to buy. If you're still holding, then it's a classic position that I always try to avoid. The best option is to treat it like a new position and get back to trading according to the strategy, which would be buying support, selling if it breaks lower and holding if it rallies. If it gaps lower on Tuesday, I would be ready to exit quickly if it continues lower and then be ready to buy if it rallies, just like those who sold on Friday.
Your chart says buy 13FEB at 55.80 or 56, which I agree with based on the support trendline. I don't see any reason to have sold this position yet. It did not reach 61 or even 60 after buying on the 13th. It did not reach any upper trendline or come back to support yet. So the question is, do you sell at 56 to breakeven or allow it test the lower green line which will be around 55.00 tomorrow? I don't have any TQQQ, just hypothetically.
My decision to sell on Fri. Feb. 16 was based on following my strategy of acting early in the day, and there was a clear trendline on the 15min chart that was broken. Also, if it had pushed higher than Thursday's high, I might have been less inclined to sell quickly. Now, there's a downtrend line which intersects with the uptrend line around 57.40 on the hourly chart. One or the other will have to break soon. If I was still holding from 56, I would sell for breakeven and then watch to buy if it holds support at 55.