NQ hits 0.786 short term support

Quick bounce options trade idea

With today’s continued sell off and purging of the tech sector, we saw the Nasdaq Dec future hit a key technical level and has since bounced. This obvious technical support will be negated as these dip buyers get stopped out below 10700. However its a smart play with known outs, i.e. buy the 0.786 and risk to new low, target a move back to 10920. That is what seems obvious to us here. We wouldn’t mind seeing a bounce here to get short NQ outright or vs SP which we prefer as Tech has obviously been the whipping boy here. Now with that said and with Powell on board to crush any hopes of any equity rise, well the risks are still for new lows to come. We believe many redemptions will be had come Q4 here once the dust settles and many funds will be under a lot of duress. We suspect good selling to come over the next 3 months as the US Govt10Y / FedFunds curve inverts inflicting even further harm on the most levered players and we know the GSIBs will be putting their tail between their legs and rather than extend credit, collect the free rent via IOER and RRP from the FED.