- Stop above $402
- Two target levels around $380 and $390
- Start profit taking near $390
- Higher-risk “spicy” idea: QQQ Nov 19 2021 390 Put near $2.50
- More conservative idea: QQQ Nov 19 2021 400 Call near $6
- Another lower risk option on this idea that I like is to sell QQQ Nov 12 2021 $402/404 call credit spread around $.70. I plan to sell this trade up in Total Alpha this week
Invesco QQQ Trust (QQQ) - Bullseye Pick of the Week
QQQ dropped decisively right out of the gate just after the alert was sent and showed almost triple digit returns in the first couple of days.
Original Alert went out on November 8, 2021.
This is a rare week that I really don’t like anything in the market for a fresh long trade. The markets are very extended to the upside right now and I feel that we are going to see a pullback soon now that a majority of earnings reports are behind us.
There has been a huge front loading run up into what most traders (including myself) are hoping will be the “Santa Rally”. With the QQQ up nearly 15% from the lows of just a month ago, you have to ask yourself how much more room does this rally have before it at least digests some of the gains?
Maybe none. Perhaps the raging bull market continues higher, but there are a lot of flashing signals to me that we are close to a short-term top in the market. That being said, I think it makes sense to try to capitalize from a dip if it happens this week. One of the best ways I like to do this is by simply buying QQQ puts.
I will keep a pretty tight stop on this trade. If QQQ breaks above $402, then I will exit for a loss. Otherwise, I think QQQ can drop $10-20 in the next week to the $390 and even $380 ranges. I will plan to exit if the QQQ nears the $390 level soon.