My Trade Plan Details:

• QQQ Oct 6, 2023 $355 puts near $3.60
• Stop: Close over $365
• Target 1: $352
• Target 2: $348

My Reasoning:

You can easily make an argument that QQQ is “oversold” right now.  It certainly might be, but I have learned that oversold stocks can still get a lot more oversold before they rally.

My AI indicators are not close to showing a recovery yet, so I am going to stay on the bearish side of this trade.

This is not going to be an easy week for trading.  The market is very volatile right now and you should expect some very large swings back and forth.  If this is not your type of trading environment, I don’t think there is any shame in sitting on the sidelines and waiting for a better entry point.  

I would not call this an ideal time to trade at all.  That being said, I plan to attack QQQ this week in several smaller trades.  I want to get started with buying puts on it this morning, and then wait for more entries.

We will see either of two scenarios: 1) QQQ will drop significantly under $355, which will be a good spot for me to take profits.  2) QQQ will dip at the open, but then rally, probably somewhere near the $362 level.  That is where I plan to add to my puts.

Since I expect such a wide range of prices, I am going to keep the size small on the trade and look for a quick exit if I am right, and also let myself take advantage of any “fake rallies” that may occur.

If I am totally wrong on this trade, I think QQQ will close over $365.  That will be where I stop out of this trade.

If I am right, QQQ will break under $355, and I hope to sell somewhere above $350 for a quick score.

Get ready for a fast-moving week of trading. There will be a lot of opportunities on both the long and short side of things!

I will cover everything I see in the 11am LIVE SESSION so make sure you attend today.