The markets are in a limbo as far as I can see. Haven't found anything so far worth putting the funds into. The Q's are in an up trend still and close to their upper channel. Until some sign of weakness is shown I am not interested in going short. Going long around such extended price level to the upside also is not for me. For now it's peace, tranquility, and inaction that reign supreme. Gringo
Here's the update chart of the Q's weekly and daily. Price is close to reaching the lower end of the trend channel. We'll get ready to see if longs ever poke their heads out for a dash. Looking at the daily though we can see the speed with which price dropped. Buyers were in charge and there was no demand. Supply kept coming and pushing price lower. This gives a bit of a pause in terms of getting too excited about the long side.
Added puts on QQQ. It has reached the upper limit of the trend channel and hourly is a bit weaker. This is less certain and obviously riskier than the long position so caution is the watchword. It's not easy initiating a position around here, looking down. I have till mid Jan for it to drop some. Gringo
Gringo, I think we are on the same page here. The drastic drop in volume over this last runup may be an overture the the longs about to start taking profits. FWIW. I don' use indicators, but did notice the the OBV has finally shown a divergence on the daily chart.
I pay less attention to volume as price can go higher without it. Lets hope for the best. My situation is a bit shameful. I mistakenly bought Dec Puts instead of Jan and now will have to reduce my risk. If price doesn't cooperate quickly there's very little room for adventurism! Gringo
Both your price risk and information risk are less due to where price is. However, price may not correct before the end of the year. It has, after all, been moving sideways for a week. Therefore, you may want to switch to Jan now rather than later.
Why do you look for a short, just because price is at the top of the channel? Price has broken out of channel upper limits on countless occasions. For instance the upper limit of the channel from the 2009 lows, where so many were looking for a market top in January now seems meaningless since we keep seeing HHs and HLs well above it.
If long, stay long until a reversal takes place. If out, wait to see what happens at this upper limit. If price breaks through it, take the retracement. If it doesn't, take the reversal. SOP.
Yes, the price is continuing to trend sideways instead of showing some weakness. I am looking for an exit today.