The cubes came within inches of a 312.29 target we’ve been using for months to keep us agreeably on the right side of the trend. Subscribers who got short near the actual high at 308.60 should take a partial profit on half of it and hold the remainder for a swing at the fences. We hold no official position because the gap between the actual high at 308.60 and the target was too large. It’s too early to tell whether the downturn will get legs, but usually it is a bearish sign when a target as narrowly missed as this one gives way to a nasty countertrend leg of 3% or more. That would be about twice what we’ve seen so far. ______ UPDATE (Dec 15, 5:26 p.m. EST): Let’s try to get short at a potential major top, bidding 0.16 for eight Feb 19 240/250/260 put butterfly spreads. Stay tuned, since I may adjust the price or strategy as the Cubes approach the 312.29 target. _______ UPDATE (Dec 17, 10:11 p.m.): We’re getting close, since the midpoint of the spread as quoted is 0.18. If the butterfly remains just out of reach, or if you’d like to try something different, try bidding 0.68 for eight Feb 19 260/250 put spreads. This would give us the first leg of the butterfly if QQQ subsequently drops. If we were then to short eight 250/240 put spreads, we could conceivably put on the ‘fly for pennies or even a credit.
QQQ – Nasdaq ETF (Last:310.62)