The 63.18 high of yesterday’s opening-bar bull trap exceeded a key external peak from May 29 by three cents, creating a bullish impulse leg that easily endured the selloff that followed. Whatever QQQ does in the days ahead, we’ll be looking to short it however we can, every chance we get, since it’s an ideal trading vehicle for relative novices. First, though, here’s one for more-experienced Pivoteers: If the pattern plays out more or less as sketched, go short at ‘X’ by buying a multiple of four July 60 puts. I’ll update with further guidance intraday if at least two traders report fills in the chat room. _______ UPDATE (11:12 a.m. EDT): Cancel the order. The pattern has in fact developed to produce an ‘X’ short at 62.40, provided the point ‘C’ high at 62.40 endures. However, the QQQs are moderately buoyant today, and in the hourly-chart duel that has played out since Wednesday, bulls would appear to hold a slight edge. If we were to get short right now we’d be in the position of hoping for “bad news” Sunday night. Hope being the final refuge of the desperate, we’ll wait for a better opportunity.
