Hi Shoppers,

 

WOW!

 

WHAT A MARKET!

 

In my last letter on Wednesday, I showed all the support levels being hit on the major indexes.

Let’s take a look at where they are now, two days later …

 

Plus get my new trade idea in Proshares Ultrapro Short QQQ (Ticker: QQQ).

 

CHART TIME

 

S&P 500 Index (Ticker:  SPX):

SPDR S&P 500 ETF Trust (TIcker:  SPY):

Invesco QQQ Trust (Ticker:  QQQ):

IShares Russell 2000 ETF (TIcker:  IWM):

Looks to me like they have held those support levels.

They created inverted hammers on Wednesday and traded higher than Wednesday’s highs yesterday.

That is a bullish reversal signal.

Here is my new trade idea in Proshares Ultrapro Short QQQ (Ticker:  QQQ).

 

As long as the last of the big earnings coming out do not upset the apple cart, I think this market could bounce a bit from here.

With the implied volatility as high as it is, it is pretty difficult to find a cheap way to enter the long side of any of these indexes.

If the markets open strong and stay strong, I will be looking at the Proshares Ultrapro Short QQQ (Ticker:  SQQQ):

I think SQQQ could trade back down to the blue 50 day moving average at $40.57.

SQQQ is short the QQQ’s, so I am looking at the Apr29 puts in here.

Risky trade but I think if you can buy the Apr29 43 puts under $1.00, they will pay off by the end of the day.

Only enter this trade if the overall market sentiment is higher.

Trade Review

British Petroleum (Ticker:  BP) did not trade higher until yesterday. I hopped into the Apr29 29 calls.

I think BP can trade near $30 by end of day Friday.

Thanks for Reading … See You Next Tuesday!

Licia Leslie