For those who are wondering, I am hanging in there on my short position by being long QID. I have a nice little profit today, but I lowered my cost basis by scalping a quick trade at the end of last week with a put option, and I’m going to stick with it.
In fact, once again, I’m looking to add to the position. Here’s a chart of the NDX- the index that goes up and down with the NASDAQ 100.
As you can see, the NDX bounced a little today. If it bounces more over the next few days, my intention would be to add to my position- possibly when it regains either 38% or 62% of its fall.
If it continues to head down and ends up closing below the yellow support line you see in the chart at 1945, I believe it will be headed for 1908- I just can’t say how soon.
In either case, I believe it is headed for 1908. Whether it makes it down to 1817 is dicey. The DOW and S&P 500 have both completed full 61.8% retracements of the March to May move up, and probably don’t have a lot more downside.
Let’s see what happens tomorrow. A little bounce here might be just what the MD (money doctor) ordered.
Comments and questions are welcome.
I think the spx gonna head up from here to challenge the 200 ma again, still holding your short position ?
Editor: I’m not short the S&P- I’m sure the NDX- the NASDAQ 100, through QID. I believe the correction in the S&P has already run its course, and there isn’t much upside on the shorting the S&P- the NAS hasn’t corrected enough in my view, but last week might have been a good time to cover.
At least you are comparing QID against the correct index this time!
Editor: I know a good suggestion/correction when I read one.