‘We’ll have a quiet ‘spreading party”, they said.
‘It’ll be fun’, they said.
With the lack of any substantial news, what seems to be a simple spread trade has the Nasdaq Composite September Futures selling off by more than 2.70% intra-day at the time of this writing, with no signs of slowing up as we approach the final hour of trading.
And as you know, we’ve had a pretty large QQQ position on since April (actually, we’ve been long the QQQ’s for longer than April. It’s just that we’ve been public about it since April, so that’s all we are going to lay claim to).
The Spoos and DOW do not seem to be taking much notice. So we’re taking a measured risk, and we’re sticking to the process and remaining long. We’re viewing today’s action as a necessary pummeling. “Bear Fuel” on which to feed, so that we can move higher once again; feeding on new shorts on the way back up. Like the middle of a “Rocky Balboa” fight, we’re willing to take a few licks and some pain, as we stick with the process that still has us long QQQ …