Update on our ETF strategy from March

As mentioned in our blog post of 3-13-20  we stated that it would be a good idea to place buy limit orders on some triple leveraged ETFs at very low prices, so as to establish a leveraged long position if the market became extremely oversold.

As an example we said to place buy limit orders on the triple leveraged Nasdaq 100 ETF, ticker symbol TQQQ, in the $35 – $45 price range.  On Friday 3-13-20, the price of TQQQ was $56.84.  It then fell to a low of $32.27 on 3-23-20, so all these buy limit orders would be filled, with an average price in the $40 range.

TQQQ has now risen to $53, producing a gain of more than 30%.

At this time we would place some sell limit orders, to exit the trade if the market continues its recent advance.  Therefore we are placing sell limit orders on the TQQQ position at prices of $56, $59, and $63.  (We may adjust these orders in the days ahead.)

(Note:  this comment posted 4/8/20)