The market ran out of steam midday and gave back all gains plus some by the close. We had noted this was an possibility this morning and advised to go back to our winner from last week for more.

It is highly likely that we will see the decline extend through the week and have outlined the next trade to take to exploit this below. In addition, tomorrow’s election sets up the reliable cycles that follow these events and if you haven’t looked at our Election Pattern Guide, now is the time to do it.

Here is the chart that shows how we will use our previous winner for another trade:

The weekly chart of QQQ shows the downtrend continuing and using the inverse QQQ ETF, SQQQ, is an easy way to consider. If you weren’t able to grab another SQQQ call this afternoon when things reversed, you can jump in tomorrow. The Dec 18 47 calls for SQQQ closed at 3.85.

In this case, we kept the same expiration and bumped the strike up based on the momentum we are seeing in this move. That kept the premium relatively cheap.

Make sure things haven’t changed at the open tomorrow, but we are hoping this trade will do as well as it did last week.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily