Earlier today, the markets made a strong upward move, but then reversed sharply at the end of the day. The Nasdaq lead the way down. The short-term model I follow is overbought and the price has confirmed that. There are a confluence of factors right now that I think are likely to lead to at least some short term declines in the market if not more hard selling like we saw in the winter.
So, I am going to recommend a trade on QID which is the 2x inverse of the QQQQ ETF. This fund will gain about twice the percentage the QQQQ loses and vice versa. QID closed at 39.00 today, but I will start tracking it as of tomorrow's opening price. I may play this move by buying puts on QQQQ.....likely the June 50 put.
Trade: Buy QID 5/15/2008 on the open.
Pete
No comments:
Post a Comment