Shorts Flushed... the Other Side of the Coin

Well, I was worried that this would happen. IWM and QQQ gapped up this morning. IWM definitely rose near 3% due to short covering, myself included. So, THIS is the official end to the hot streak, and it also demonstrates why I have been taking profits so quickly!

• QQQ: -85 @ 87.54, covered 88, loss = -$37.72. Should have made $155.55  
• IWM -75 @ 111.20, covered 112.45, loss = -$93.75. Should have made $180.75.

So, instead of collecting $336.30, I lost -$131.47. Still not a bad loss and it has been dealt with.

Now, for a new position; long QQQ in the form of OTM calls.

Volume for the 89.63 strike JUN14 calls was exceptional today, 50% of open interest. 89.63 is the next resistance for QQQ, and it has broken it's 50MA and 88 resistance that it has failed several times at over the past month. No doubt, many of the 30+ thousand contracts traded were on the short side, but I think traders are ready for QQQ to push higher.

I jumped in with them: +2 QQQ JUN14 89.63 calls @ 0.95

I'll be super pissed If I get whipsawed and QQQ is down hard tomorrow. Don't add insult to injury, markets.