Tech got clobbered for a rare change Friday, but you can see for yourself (inset) that this did not significantly change the bullish look of the Nasdaq 100’s intraday charts. In fact, if the Cubes were to fall to p=267.34, the midpoint Hidden Pivot, that would generate a mildly enticing ‘mechanical’ buy, stop 262.00. I am not recommending call options for this play, however, since the green line where the bid would be placed is not a support, nor could it be expected to reverse the downtrend in the precise, precipitous manner we are used to seeing at the three Hidden Pivot levels — p, p2 and D. The 283.35 target will remain theoretically viable as long as C=251.32 is not violated to the downside. _______ UPDATE (Aug 10, 9:18 p.m. ET): The trade triggered around 11:00 a.m. and went into-the-black shortly thereafter, eventually achieving a recovery high at 270.90. Since no subscribers mentioned it, I have not established a tracking position. The p&l record for these mechanical set-ups is all on the record, with time stamps, and can speak for itself, but I am puzzled as to why they are attracting so few followers. In the interest of growing your confidence, I’ll ask you to comb through past touts and chat room posts in search of ‘mechanical’ trades that did NOT work. I may be wrong about this, but I can recall only one in the last several weeks that produced a loss. _______ UPDATE (Aug 11, 8:40 p.m.): My post in the chat room a few days ago caught SQQQ’s low near the bottom of what is turning out to be a significant rally. If you got long in this ultra-short vehicle, please let me know in the chat room so that I can determine whether to establish a tracking position. I’d advised purchasing out-of-the-money calls at the time, but without specifying a strike price or expiration date. FYI, the mechanical long in the QQQs would have been exited profitably on a stop-loss, since it rallied more than 3 points after entry.
QQQ – Nasdaq ETF (Last:265.19)