Hello again folks. We know it's been pretty quiet at PBT lately. Perhaps PBT and I were too busy riding the rails to bother to peck out a post or two (or earning our paychecks...). Regardless, I hope you'll find something worth chewing on in this week's review.
QID
Ultra Short QQQ ETF
If you were looking for a good entry for a new short position this past week, you missed the boat. Instead of a reflex bounce after last Friday's sell off (with the possible exception of the Dow), investors came back to the market on Monday ready to dump more shares. The selling pushed the indices even closer to their March lows. The NASDAQ Composite finally broke below its 50 day moving average (DMA), the last of our indices to do so, before popping back above it today.
I don't like to short sell individual stocks, but I do trade ETFs which short market indices. If the market is trending down, I look for opportunities to short the weaker index as it finds resistance at certain areas. At the end of January, I traded QID (shorting the NASDAQ) as the NASDAQ found resistance around 2400. At the time, the NASDAQ was underperforming the S&P 500.
Last week, if you took my previous weekly review to heart, you may have made a similar trade--say, buying DXD (shorting the Dow), and are sitting on a decent gain going into next week.
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