Simple Bet Against the Market With QID
For the short term bear like myself I have a trade you may find interesting – I am making a small bet that the NASDAQ 100 is not going to make higher highs and surpass 2051. It instead will trend back down to 1960ish.
QID is currently trading at $37.42 which is the ultra short ETF of the Qs. Basically, when the market goes down, this ETF goes up double relative to the QQQQ.
I bought a small position of QID here at $37.42, and placed my stop limit order at $36.75 (about my standard 2%). The key number for the QID is $36.81, because if the ETF falls below this price it means the NASDAQ 100 has made higher highs. Target price for this trade is $40 – $41.
Here is a chart so you can see the trade visually. Odds on this play are maybe 25%, so bet accordingly if you wish to participate. Feel free to view my trading rules for help.
I always like these funds that help avoid shorting.
agreed – gotta love the ETFs.
I played the SKF about a week ago, but didn’t see that much upside honestly. I think financials are so beaten up already, that there may not be more room to go down, but you never know.
Good call on the QID I think. Tech seems to be overbought at this point, it may make more upside yet. I was considering buying puts on the QLD.
Blaine, depending on when you are planning on selling, I give this about 50/50 odds, which aren’t bad considering you will cut losses quickly. I am going to get some also, in the a.m. Good trading to you.
Did you grab a position? Crazy day today.