Last Update: 7/24/2019
(follow @2kaykim for the future updates)
5/29/2019
I’ve actually first initiated with TQQQ CALLS @ 35s (LEAPS and also SHARES) in early January as I’ve mentioned on my last QQQ JOURNAL post. Then I closed out my TQQQ CALLS in mid April at 65s with gain while holding all of my SHARES. With the recent decline, I’ve been accumulating more SHARES on TQQQ and got into CALLS again here today at 52.39 (on this journal post I will only focus on my CALL positions going forward).
This trade is mostly a technical and psychological setup as I believe most traders might jump into a short thinking this is the Head and Shoulders bearish pattern as you can see in the chart below (annotated in purple); I am thinking more like a trap to lure in shorts before rising back up. I can’t say for sure this will be the bottom but this is the vicinity that I was looking to get back in with CALLS.
For this setup to play out, we first need to take out the neckline (blue dotted line) to the upside, and then get above the 64ish to create higher high and then fall back down to 55-57ish for higher low before going higher for 70. I am open minded for this to possibly retest 45-48ish to fill the gap in that area. More updates later.
TIME-STAMPED
• ENTRY: 52.39
6/10/2019
Well, my entry was at 52.39 and I was open minded for “45- 48ish” (previous update), it came down to 47 before bouncing back up to close the day at 58.22. The setup is playing out well so far as we are now staying above the neckline (blue dotted line). If the price slides this week I want to see 55-53ish level to hold for the continuation to the upside. We faded towards the end, but it filled the down-gap from 5/20 so its a good thing to kill the selling pressure. As I’ve pointed out on my Twitter feed earlier today, we’ve got strong momentum built on the NASDAQ so I think with short-term rest or pullback it should continue to march higher to 64-68. Let’s see how it plays out rest of this week.
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• ENTRY: 52.39
6/20/2019
As I’ve mentioned on my very first update (5/29), we have now created the “64ish higher high” breaking above the 60ish pivot. We can now categorize the minor-term trend as bullish with leaning towards to overbought sentiment. Down-gaps from 5/3 & 5/6 are still open which needs to be filled. Should the price slide going into next week, I am open minded for 58-55ish retest before finding support. Still holding full position since 52.39.
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• ENTRY: 52.39
7/3/2019
On my previous update (6/20), I talked about being open minded for 58 retest, well, we retested 59 level before getting back up and we closed at 66.45 today. There is a down-gap (from 5/6) that still needs to be filled which is at 67.70ish unless we gap above it for the next target of 70. If we do see a pullback, let’s see if we can hold 64-62 vicinity. As of today I am holding all of my CALLS on TQQQ since 52.39.
TIME-STAMPED
• ENTRY: 52.39
7/24/2019
The market has been respecting the rising 20EMA as I’ve tweeted it out on QQQ few days ago as it also reflects in the chart below on TQQQ. We are not overbought yet and I think there is more upside left. There is a small down-gap that needs to be filled at 71.50, and we may stall little bit there. TQQQ has moved +35% since my entry back in 52.39 as it closed the day trading at 70.05. As of today I am still holding all of my CALLS.
TIME-STAMPED
• ENTRY: 52.39
