How to short the $QQQ with exact precision

The market actually had a down move today.

Crazy, right? 

We put everything on hold because a down day is practically a miracle in itself. But more importantly, I proved once again that the market is, in fact, rigged.

"Fat Finger Freddy" showed up around 8:01 am this morning and gave us an indication that maybe we would sell off. 

At the time, the $QQQ was at $734.50, and then it pivoted and ripped to all-time highs. Most people wouldn't think the early print would come into play.

But we took it under advisement. Because the market is rigged, and it likes to show its hand. It slips and tells us where it's programmed to go.

So we waited. And then we saw something you may never see again considering this market never seems to go down: An engulfing bearish blow-off top candle on the $QQQ.

The $QQQ broke a new high, and in that same exact candle, broke the prior low.

At that moment, I told the room, "Something just happened. There is a chance we could actually pull back." 

And we did. But it wasn't until the VWAP shuffle that I knew we had limited risk. I told the room that if there was ever a time to short the $QQQ, it was right at that moment.

We junked every other idea - space rockets, robots, quantum AI, all out the window.

We noticed the $SOXL was leading the charge down. 

As the $SOXL had a sell-off, the $QQQ was the blow-off top we participated in.

Blue line entry for the $QQQ short: $735

Target: $729

It got to the prior day VWAP, started to bounce, and the trade was over. From $735 down to $730. If you had a couple of hundred shares, that’s $1,000. 

We were finally able to short the $QQQ with an exact reason, and we got paid.

Every other trade was irrelevant at that point, but we did make one more move. We bought $SOXS.

After 58 straight days of going higher, the semiconductor market finally took profits, and $SOXS rolled over for a long setup.

Our entry point was $5.73, risking just about 12 cents per share. On 2,000 shares, you were risking roughly $250. The stock proceeded to go from $5.75 to the orange line at $6.37.

That’s a cool $1,000 trade while risking about $250.

A fantastic morning, and by 9:38 a.m., our trading was over. Have a great day.

If you’re already inside the room, I’ll see you tomorrow. 

If you’re not in here yet, here’s the link to join us: 

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Kenny Glick | Founder, Hit The Bid