$SQQQ as Portfolio Insurance for AI Downside

Jun 28

I owned robotics, AI, semiconductors and automation stocks and using SQQQ as a hedge to offset part of the downside is a reasonable approach on this one.

I won't replace those holdings with SQQQ but rather will use this short-term bullish play only as portfolio insurance.

What I'm saying is suppose you own AI stocks and you're seeing correction, use SQQQ as a hedge rather than making this as the primary position.

I'm short term bullish SQQQ as it is trading above the 5,10,20, 50 day moving average and the RSI is around 50s (not extremely overbought) and the momentum, has improved materially over recent weeks.

What's the risk involved here:

if QQQ fails by -1% then SQQQ will approximately move by +3%
if QQQ fails by -3% then SQQQ somehow move approximately by +9%

But if QQQ rallies, losses are amplified in SQQQ the same way.

Just manage the risk properly.

Jul 8

Trade active

I am looking for that $50 level before I start trimming my long position. Let's see how this trade works out for the next couple of weeks.