Bullish NASDAQ forecast for the month of May!?!
Updated
NASDAQ Market Forecast and Prediction for the rest of 2022
>>>Bullish Month in May driven by Oversold market conditions and Earnings?
>>>Rejection coming at the 50/100 Daily SMA?
>>>More elongated 2018/2019 correction pattern repeating?
>>>Bullish Q3 & Q4 2022 ahead?
Every investor should ask themselves, are we in store for the usually 20-30% correction?
Or are we in store for a market meltdown, similar to the Mortgage Backed Security collapse of 2007-2009?
Or the Dot Com bubble during in 2001-2002?
> It is clear that the current situation and correction is more serious, than those in recent history. It has more drivers to the downside than the last 3 minor corrections.
> It is also clear that the global economy isn't collapsing with like in 2008. In that recession, $10.2 Trillion alone was wiped from the American economy alone. That's not including the hit to Global Wealth, resulting in the elimination of many more Trillions.
> It is further clear, current tech equities are not as overvalued as in the Dot Com bubble. I cannot deny that there has been an increasing number of Unicorns and IPOs entering the market. The majority of which have already had their values demolished. One only has to look at the recent SPACs, to see the smack these "Vision over Reality" companies have received from the market.
>>> I believe we are more likely in a 20-30% correction, rather than a meltdown of 50-70%. Long term bullish and assets do well in high inflation environments.
>>>Bullish Month in May driven by Oversold market conditions and Earnings?
>>>Rejection coming at the 50/100 Daily SMA?
>>>More elongated 2018/2019 correction pattern repeating?
>>>Bullish Q3 & Q4 2022 ahead?
Every investor should ask themselves, are we in store for the usually 20-30% correction?
Or are we in store for a market meltdown, similar to the Mortgage Backed Security collapse of 2007-2009?
Or the Dot Com bubble during in 2001-2002?
> It is clear that the current situation and correction is more serious, than those in recent history. It has more drivers to the downside than the last 3 minor corrections.
> It is also clear that the global economy isn't collapsing with like in 2008. In that recession, $10.2 Trillion alone was wiped from the American economy alone. That's not including the hit to Global Wealth, resulting in the elimination of many more Trillions.
> It is further clear, current tech equities are not as overvalued as in the Dot Com bubble. I cannot deny that there has been an increasing number of Unicorns and IPOs entering the market. The majority of which have already had their values demolished. One only has to look at the recent SPACs, to see the smack these "Vision over Reality" companies have received from the market.
>>> I believe we are more likely in a 20-30% correction, rather than a meltdown of 50-70%. Long term bullish and assets do well in high inflation environments.
Note
Hmmm another red day after this post. Still believe this might be a Bear Trap. I am not married to any market forecast opinion but I am still long.Note
Looks like the May Rally will not be happening. Maybe fall down to the -30% support levels is next. Don't panic sell minus 25-50% positions just to buy them up a few weeks later at 10% higher than current levels. Buy a Case of beers and enjoy time with your friends. This market is just depressing, distract yourself, go workout, enjoy a nice dinner. I know ill be focusing on F1 Miami to distract myself from this wild capitulation.Note
I think we are very oversold. Have a browse of almost any stock, including the Blue Chips. Almost all if not every has touched or broken down through the 200 Day SMA. This is a very attractive Indicator for a reversal. I say this with the realisation that markets are very irrational right now. Even with great equities being down >40%, they could still drop down further with this panic selling.My personal thoughts is that the best Hedgefunds and institutional buyers are currently buying the dip. Leaving the technical moving average reason aside as a reason for the market to bounce. Even putting aside the Financial ratios, which have reached the most attractive levels in the last 10 years. Especially so for Tech Firms.
Cash has become a large part in many investors portfolios. Considering that most Portfolios are most likely, still down over the last year. Even with smart money selling near the top, the portions of their portfolios still in the market have been drawn down by 40%. Even with only 50% of capital at work, that's likely a 20% drawdown.
They are likely seeing the high value opportunities in many of the tech stocks. Irrelevant if the market draws down another 5-10%, think you have to look at companies such as AMD, GOOGL, PYPL, NVIDIA, APPL(less so) and even the currently investor despised NFLX. They have the cheapest P/E ratios in years. Huge growth prospects over the next decade. They are also inflationary resistant.
Most of this Inflation problem is due to the direct effects of this Russia-Ukraine War. The main cause of inflation is the rise in raw materials. The knock effect of rising rent prices are due to other reasons. Like caused by Western Economies lack of spending in infrastructure, state sponsored apartment building projects and a lack of rent controls(temp solution maybe max 5% raise per year).
Note
Hey everyone, this market is in capitulation mode. I know the markets are bleak at present. If you're in a similar mindset, you're likely struggling to keep the eyes off the charts today. Have a look at the last few corrections. They briefly broke under the 200 Daily SMA. Focusing on the NDX, looks like we have seen peak fear. This is what capitulation feel like. It makes you seriously question your strategies. Makes you consider what if you sold now and buy 10-20% lower. You might successfully do something, to make the best of your situation. You could time it right and make a great decision. I think it's equally likely, we would just miss a rapid bounce. Might be a bit biased but we can only look back at history in these situations. Goodluck Chaps
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.