r/tqqq
TQQQ Gap Down Tomorrow!
Author expects a short-term TQQQ pullback due to macro headwinds and poor PPI forecasts, viewing it as a buying opportunity.
- The overall bull trend is not ending, and a 10% correction from ATH would be healthy for the overheated market.
- Technical support levels like gap fills, 50 DMA, and 200 DMA provide clear and attractive entry points for buyers.
- Macro headwinds such as escalating Iran conflict and liquidity drain from a potential SpaceX IPO.
- Poor PPI forecast (6.4% YoY headline, 5.4% core) could trigger a gap down and short-term correction.
Current aftermarket price is $67.38!!!
But seriously, this post isn't about the bull trend ending although we would likely see a correction (-10% from ATH). And a correction would really be good for this overheated market, especially if you are planning on buying.
We got some headwinds. Iran war going hot again, SpaceX IPO sucking out the liquidity. And tomorrow is PPI at 8:30 AM EST and the forecast is bad:
"For the May Producer Price Index (PPI) report, the consensus estimates among economists forecast a 6.4% year-over-year annualized increase for the headline figure, and a 5.4% rise for the core PPI."
So if you are like me and want to buy at a cheaper price -- what price would you pick???
We actually have a bunch of Gap Fills to pick from and also the 50 DMA and 200 DMA. TQQQ price would translate to $64.34 to $46.57
It is 70.5 now and going up
Let's see 80 by end of the day leading into a boom on Friday as people find out they can't buy as many IPO shares as they hoped.
Why do you think those guys have edited accounts?
This aged like milk
1000 share buy order at $60, come to daddy.
Tomorrow needs tech to shake out hard first then recover a little before the close. If it's slammed too hard it threatens Fridays SpaceX ipo. Need market to calm by Fridays close. Orderly selling is preferred, but a little fear gets the job done fast with a VIX spike. Next week need to stabilize some before rebalancing end of week.
SpaceX is already pinned at $135 so there is no issue with that IPO (even if the market tanks today).
Pot shot guess but I think it’ll dip to low $30s
Low 30's would be at least -20% or a crash. And it's definitely possible, the huge run UP certainly makes it easier to run DOWN. And it's possible worried the world may suffer a global recession as oil inventories dry up.
But IF this happens, we will get at least one maybe even two Dead Cat Bounces so I'm buying before $30. And if I do so, the next question is do I sell into a rally.
I hope so!
What trending characteristics, timeframe, interval timeframes, overlays are you modeling?
https://preview.redd.it/uuho8zl5oj6h1.jpeg?width=445&format=pjpg&auto=webp&s=8f70af4b18ca7c9a875e1561a35b73d2d8ad72e8
I can't afford your Fries, lil Shit, Schwab about the same. BUY me some FN Fries douchebag! I'm in Chi-town area.... extra Ketchup...
Oh WAIT, I edited my account too.........
Yo compraré en $50 o $45
So gap up?
It was a like perfect 180 wasn't it? I should start posting the opposite of what I want LOL!
No one knows the future, you can only know yourself.
Who knows im buying puts to profit on the downside
For those who partake in a little SQQQ, this might be the time, just be careful with it.
Or Iran finally gives up, no one cares about the PPI because they are as expected, the Strait of Hormuz opens and we have new all time highs everywhere within days.
We are in a very news driven time and I'm not that bearish. There might be new airstrikes but markets already went down because of them and the strait is quite closed the whole time, so no big change.
In such a time I'm doing DCA, as in invest in steps on the potential longer way down but if it suddenly goes up again, that's fine as well.
SQQQ would be a bet on a longer downtrend which doesn't seem super likely. I'm betting on QQQ recovering at some point again. Big indices have the general tendency to go up instead of down.
I’ve been selling cash secure puts on SQQQ for huge premiums and I’ve been assigned. I’ll use his Hedge to my advantage as the market finishes it correction.
Do you have a % number on the huge premiums? What DTE?
well this aged horribly lol
I'm not that bearish. Did the bull trend really end or is it just a short pause / bull flag? Is it still overheated or already cooled down enough? Is SpaceX really such a big deal or are bulls and bears somewhat equalizing each other just creating some more volume? PPI might just be as expected and not cause that much movement, just like CPI yesterday.
The Iran conflict market downtrend probably mostly came from the closed strait and it's basically closed the whole time, so no real change. Maybe the new airstrikes make them agree to a deal and we have new all time highs within days. Especially QQQ showed a great performance despite the still closed strait.