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"Buy the rumor, sell the news": It's a saying as old as the market itself. And we've seen no shortage of buying the rumor this week...
Folks have been piling into big name tech stocks, desperately sniffing out a safe haven from the latest delta variant of COVID-19. Well now that the Nasdaq has been driven well into "overbought" territory, what goes up must come down...
So today, we'll be selling the news on inflated tech stocks (in a matter of speaking) with a play on the ProShares UltraShort QQQ (NASDAQ: SQQQ), a 3x-leveraged inverse ETF on the Nasdaq 100. Basically, for every one point tech stocks come crashing back to Earth, this ETF skyrockets three points.
And with a short-term put on the QQQ itself, an ETF rising and falling in tandem with the Nasdaq 100, we can play both sides of tech correction for a two-fold payday.
Check out the video below for the details...
Action to Take No. 1: Buy SQQQ shares using a limit order of 8.95.
Action to Take No. 2: Buy to open QQQ Sept. 17, 2021 $350 puts (QQQ210917P00350000) using a limit order of $8.50.
Do This Before July 26 (It Could TRIPLE Your Money in a Week)
Last time Shah Gilani uncovered a pre-IPO play like this, it triggered 183%+ total gains - good enough to turn $500 into $1,415 in only 10 trading days.
Judging by how fast these hidden plays can move... we wouldn't be surprised if Monday's trade tripled your money over the next several days.
The flip side is that you've got to hustle before you miss out.
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About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.