With the tech heavy PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) at multi year highs, it seems like nothing can stop this bull run that commenced in March of 2009. Mutual Fund inflows are surging and money managers are as bullish as they were in 2007. As a professional trader with over a decade of experience, I have learned some simply, yet incredibly powerful things to watch for. For example, when you hear overly bearish remarks from the media and the "bagel guy," that is the time to look at the buy side (long) of the market. In contrast, when the market bulls come out of the woodwork in droves, this is the time to look for that entry to sell or enter short positions. One simply way of looking at this is, if everyone stands on one side of the boat, it is eventually going to tip.
With that said, the chart of the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is showing multiple signs of an imminent move. One of the signs is a cycle time count on the weekly chart, combined with this overbought condition. This has me on high alert, looking and waiting for the perfect time to enter a short position on the QQQ. I expect this opportunity to present itself early this week. When looking to profit from the downside move on an instrument, you can either "go short" the equity itself when your broker has shares available. Or you can use options contracts. I will personally be entering multiple option plays in the amount of $10,000 this week looking to capitalize on the next major moves in the Precious Metals and Indexes. When these trades are entered, we will alert members of the Elite Round Table live via text and email alerts, so that you can follow along and ride the next great trade for profit with us.
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