Good morning. This morning finds us in a not so spectacular entry situation. Whether momentum trades, or fade trades, this mornings pricing is not optimal. A trade opportunity I see readily approaching is a trade on the QQQQ. It is a momentum trade which should exploit any bounce off the secondary extension deleverage area and/or the reset area. I want to get this out quickly, for the entry seems to be rapidly approaching. This will also serve well as any hedge for existing fade trades on the Q's you may be in. Those fade trades should be in the green as of this writing.
This trade will be nullified (void), if we continue up to make a high that exceeds 7/30 and 8/04 before entry.
Current entry 38.90 (1 lot)
After entry we add at 38.05 (1 lot)
or hit target exit at 40.19
If we add the second lot, target exit is still 40.19, stop loss exit of 37.37
Max capital required (using Oct 30 calls)
1,695.00 (per lot size)
Gain on first entry to target 129.00 (per lot)
Gain if second entry is hit 343.00 (per lot)
Stop loss 221.00 (per lot)
