My strategy is to time the market using the QQQ's which is an exchange-traded fund based on the Nasdaq-100. Powershares QQQ's etf tracks the market-cap-weighted Nasdaq-100 index which is 100 of the largest non-financial stocks in the Nasdaq Composite Index.

I would suggest inexperienced traders stick to using the 1 for 1 vehicle and not the leveraged etf's such as TQQQ's or SQQQ's. These leveraged etf's are meant for shorter time frame trades, not long term. They tend to lose value over time, they are not buy and hold strategy's.

Below I have a simple chart showing ProShares UltraShort SQQQ's 3x leveraged etf corresponding to 3x's the inverse daily performance of the Nasdaq-100 index. Again remember these lose value over time, they are meant for short term trades, not long term. They also bring more risk so traders need to have well defined entry and exit points to protect their capital.

The chart below shows support near the lower trendline. I use cycle analysis, astro's, technical indicators and many others to make my trading decisions. I generally do not rely on moving averages, specially and not limited to the 200 dma and 50 dma. I have proved time and time again, these are near worthless for this type of trading. Moving averages are just one simple tool that can be advantageous when used correctly but some are referenced and used mindlessly.

Good Luck,

Joseph VanDerveer is the Chief Technical Analyst with 8 years experience in the trenches trading the markets with a brand new website and service at www.doubleplayoptions.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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