TQQQ , SHORT ( but immediately out in aftermarket for tiny loss)Almost did not share this and it's kind of pointless because I made the choice to exit it immediately in am .
But then I figured that since I have made a point out of posting every single 2022 trade in swing account , that I should still post and explain my logic here. I almost kept it on but here's why I just got out .
My precedence for getting short here at close on TQQQ was that QQQ closed under the 10 and 21 ema and it is in a stage 4 DT cycle.
It is basically my responsibility to take it the wedge drop signal even if I don't want to here . I waited until the end of day , final 30 min is my rule for entries ( filters false signals well ) . In this case I even waited until the final 15 min and saw the bearish engluphfing candle that was also a wedge drop , and put the trade on. But by the time we closed , we pushed up that tiny bit just above the lower ema and that's not a wedge drop. Then I had to make a decison as to what to do . I realized that this is somehow the first time to my recollection that has happened to me too and I did not yet have a rule on how to handle the event . I'm sure it will however happen again so I decided to just get out and to make it a standard protocol for when it happens in the future . If I take a wedge drop , or wedge pop trade and the signal fades in the final few minutes of trading day , Its no longer a signal really, so the only thing to do is get out at that point . I did stay in SPXL short though because it still checks the boxes ( SPY has put in a death cross and subsequent wedge drop that is also below the 50 sma)
Anyways long drawn out explanation but there's the logic and the update to my rules for the future.
