QQQ Short under $372

5 thg 10, 2023

I took a short at $372 using credit-calls. The thesis is that QQQ has made lower highs creating high-resistance liquidity and has shown a propensity to cheese-knife down below prior swing-lows.

This is a bearish run.

There is a swing-low at $348 that is a possible bounce area; but I think that QQQ intends to challenge the $372 zone anyway.

This zone is an old swing low that was taken out which makes it a high resistance area. Fading a rally to this price makes sense.

The thesis is valid if the price action toward $372 is indirect and drawn out. The thesis is less valid if price moves strongly toward $372.

The prior swing-high at $380 is much higher resistance and presents a great short opportunity that could open up if $372 becomes challenged.

For now selling premium on the short side at $372 makes sense.

If we reach $348 a buying opportunity may form.

Lastly - 27th SEP took out the 18th AUG Swing-low thus I think the market structure is still bearish which makes any swing-higher to be fadeable unless it starts to take out prior swing-highs.