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At the Kiss of resistance (1) positions to score on defense were suggested. So far the NDX 100/QQQQ’s have declined almost 10%, and PSQ is up almost 10%.
Game Plan….For VERY AGGESSIVE investors only. Be a buyer of PSQ at falling resistance with a very tight stop! Good spot, if aggressive to risk a 2% loss!
Zee…yes we have been scoring on defense. We bought these positions when the market was much higher. Now after a decline, investors are getting scared, hence the rise in the VIX. The big rise in fear, actually increases the risk of the inverse postions at the moment. The high fear reading/VIX suggests the market needs to rally to work off the fear. The rapid rise in the VIX could be suggesting that too many investors think they are going to score big on the down side. As we all know, when positions get crowded, Mr. Market does his job and creates some pain!
Hello Chris,
I note you are still of the theme of scoring on defence (SMN, PSQ, DUG) – but are you saying the charts indicate a short term rally due to the majority sitting on the ‘market still going lower’ camp.
Btw: Are u still holding on to DUG ?
Considering what has happened in Ireland the past few years, I don’t know if we want their Luck. Irish ambassador to Canada expecting record Irish leaving Ireland this year …. at least in last 30 years.