$Invesco QQQ(QQQ)$
🔻 QQQ’s Green Start But Bearish Finish – Why I Loaded Up on 530 Puts 🔻
Today, QQQ opened strong, surging to an intraday high of $531.52, riding the momentum of a bullish market fueled by tech giants like Apple (AAPL), Microsoft (MSFT), and Tesla (TSLA), all of which opened green. However, despite this strength, QQQ struggled to break through key resistance levels, signaling potential weakness ahead.
Why I Took the Bearish Bet on QQQ
As I watched price action unfold, I noticed a failed breakout attempt near $531.50, a level close to QQQ’s 52-week high of $539.15. Instead of pushing higher, it began forming a lower high pattern, a classic signal that bulls were losing momentum.
The RSI (Relative Strength Index) hovered around 70, indicating an overbought condition, and MACD showed waning bullish momentum, which further confirmed my bearish bias. Seeing this, I loaded up on 530 puts, anticipating a reversal.
Perfect Timing – Trump's Tariffs Trigger the Sell-Off
Just as QQQ started to struggle, Trump's tariff implementation news hit, sending shockwaves through the market. Investors quickly rotated out of risk-on assets, and the selling pressure accelerated. This was the catalyst that drove QQQ down from $531.52 to $526.94, confirming my thesis.
Final Thoughts
This was a textbook "buy the rip, sell the dip" scenario, where an overextended market met a fundamental catalyst, leading to sharp downside. With volatility increasing and macro risks building, I’ll be watching for further downside in QQQ and whether we see a retest of $520 or even $515 in the coming sessions.
📉 QQQ 530 Puts Printing! Who else caught this move? 🔥💰
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