Almanac Trader Alert – Pre Witching In June Continues

Our strategy of trading the days surrounding the triple (or quad) witching Friday in June from the short side continues. Three more sector/market ETFs – SPY, QQQ and XLP – have generated entry signals.

For S&P 500, you can go either short SPY, SPDR S&P 500 ETF Trust, or go long SDS, ProShares UltraShort S&P 500 ETF.

For NASDAQ, you can go either short QQQ PowerShares QQQ TRust ETF, or go long TWM, ProShares UltraShort QQQ ETF.

The short ETFs for consumer sectors, ProShares Ultra Short Consumer Goods (SZK) and ProShares Ultra Short Consumer Services (SCC) are very thinly traded. So it is better to short the corresponding long ETFs.

  • Go long SDS (or short SPY) at or near 25.55, the close on Wednesday June 18th
  • Go long QID (or short QQQ) at or near 51.24, the Wednesday close
  • Go short XLP, Consumer Staples Select Sector, at or near 45.41, the close on Wednesday

The trade is normally held for a short duration – typically for 5-10 days. We will send an alert when the exit signal is generated.

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