Yo Pit Crazies,
The Invesco QQQ Trust (Ticker: QQQ) is up bigly for the year. $260 to $360 is not a bad move for the end of the year.
QQQ IV is near the bottom, and things are setting up for a big move into the end of the quarter:
QQQ 1 year chart with 1 day candles and 30 day implied volatility
I’m going to say that CNBC tagline: “window dressing”. What will the fund manager bid up into the end of the quarter?
Maybe IV has a clue for us?
Implied Vol for QQQ Is at the Lows
Lower volatility is just that – less of a move.
My basic sense is that traders are setting up for the perfect end of week rally, head fake Tuesday, and bid up into the close. Rally QQQ to the highs of 2023 for a nice end to the 1st half of the year.
Good housing numbers and consumer confidence fueled a rally, so I expect more of it. QQQ and even SPDR S&P 500 Trust ETF (Ticker: SPY) highs are in the cards for Friday.
Also, the VIX future complex lost a lot of premium today. That’s usually bullish stocks.
Easy Button is leaning long delta strangles with International Business Machines Corp (Ticker: IBM) as the newest trade. Implied vol is 14%. Crazy cheap!
To Your Trading Success,
AG