Nasdaq Crash Loading - The Black Swan The current state of the NASDAQ indicates an extreme overbought condition, with a rally influenced by speculation surrounding six potential rate cuts in 2024. However, the risk arises from the Federal Reserve's concern about inflation. If the Fed, in response to persistent inflation, opts to raise rates, it could lead to a market decline. Conversely, a decision to cut rates may not be sufficient to buoy the stock market if the number of cuts is lower than expected.
Examining current fundamentals, the housing market has stabilized with low prices and mortgage rates. Although there is a rebound, a potential increase in housing speculation and mortgage rates could prompt a reassessment. Improved employee wages contribute to consumer confidence against inflation.
President Joe Biden's initiatives, such as pausing student loan payments in November and plans to provide homes for 500,000 Americans, may stimulate housing demand, causing prices to rise. This could prompt a review of interest rates and a tightening of monetary policies.
While I maintain a long-term bullish outlook, anticipating a correction of at least 50%, it is prudent to reevaluate macroeconomic indicators at that point to determine whether to take profits or continue holding.
Nasdaqsignals
NAS100 & SPX500 - WHAT IS HAPPENING TODAY? (CONFLICTED)We are at a pivoting point in the markets, everything seems to be bullish and yet I have this bearish itch. Markets seem to be overpriced, notably the NQ. However the S&P500, has had a healthier correction and the continuation of its rally makes more sense.
Since both markets are highly correlated, it would be absurd to short the NQ while the S&P500 looks so bullish. Why do I want to short the NQ? Technically it hasn't retraced as sanely as the S&P500 but that may be the nature of both markets. The NQ being more irrational (more speculative) than the rest, especially with the AI craze.
So here's my two cents worth on the matter!
What is on the charts? (follow the steps)
1) Highs that wicked many times in the daily bearish FVG.
2) Significant high that as I'm writing this has been taken out.
3) The retail sales session that took out lows and this is also what has me question the rally. If it is supposed to be bearish info why isn't price dropping? These are the reasons why I do not trade on certain days because I do not see clearly all the time.
4) Asian session lows, a great target for shorts.
5) A retest (or break of the daily FVG). I am not a breakout trader which is why I am not focusing on the bullish outcome because I couldn't tell you how to trade it optimally.
6) The bearish structure (that may never present itself). This all depends on the S&P500, for me to accept a short I need that double confirmation. So right now I accept everything as bullish unless shown otherwise.
7) Asian session lows taken out.
8) Finally the healthier correction that I'd want for the NQ to accept a more bullish approach.
As always, happy trading everyone and have a lovely day! ;)
NAS100 - MY INTRADAY ANALYSIS (TARGET 16630)Here I'm trying to change things up with a smaller timeframe (15min) analysis because the daily is nice but how does one trade that? Well here you have it.
What is on the chart?
1) Yesterday's session low, aka sellside liquidity, that hasn't yet been taken out which gives us a juicy target for the day.
2) Yesterday's consolidation that gave the upper hand to bulls in the AM session but now it serves us for our bearish bias of the day.
3) Price wicking once more in the daily FVG and not taking out the high. Great news for bears.
4) Price retraced back into the reload zone (0.702 notably) and furthered its descent into bear territory.
5) Bearish 1 hour order block. Will be used partly for our entry coupled with the fibs.
6) London session lows that will also serve as a target. When there's an accumulation of targets it increases the probability of success when placing a trade aiming in that direction.
7) My ideal entry. To your own discretion, I can afford losing 1%, can you? (affording something isn't just monetary can also be psychological. Can you cope with losing your money once more because of the idea of a stranger on the internet?)
8) The outcome I'm looking for. If we're going for a bearish scenario this is what should (I want to) happen.
NOTE: Retail Sales data release 08:30 NY time. Could make it or break it.
Happy trading and have a nice day! ;)
NAS100 - MY BEARISH SCENARIO (TARGET 16500)What are we looking at?
1) An all-time-high (ATH) to end 2023 with fireworks and champagne.
2) A sneaky daily bearish FVG that we know is relevant thanks to step 5 and 7.
3) A retracement creating a range that ends on the notorious 0.618 fib level (weekly fib).
4) The continuation of the general trend, price pulls back into the range and creates a daily bullish FVG. It is indeed plausible that price does continue and forms a new ATH but for arguments sake, I prefer the probabilities a short gives me in a premium market with more liquidity to grab on the sellside.
5) Price halts in the bearish FVG mentioned in step 2 and prior to that created a 4H bullish FVG.
6) The CPI release had price wick into the 4H FVG and back into the consolidation we go!
7) Price wicking at multiple occasions in the daily bearish FVG which is to me a primary signal for a short setup despite all the bullish price action around it. Listen, if price breaks buyside aggressively, no short will be taken. We need price to break a low and then a short structure may present itself.
8) Here we have the potential break to the downside, taking out sellside liquidity. We can also call this a break-of-structure.
9) A pullback for a potential short entry and voilà.
10) 2 targets for partials.
NFA and happy trading guys! ;)
NASDAQ Post Cup & Handle rally in motion. There'll be pullbacks.Nasdaq (NDX) has completed a giant Cup & Handle pattern and since the late October 2023 bottom, it has started the post Handle rally. This rally historically tends to be a very long-term one but with its fair share of corrections to at least the 1W MA50 (blue trend-line).
As you know 2022 was the year of the Inflation Crisis (left side of the Cup) while 2023 was its recovery (right side of Cup). Going back to the 2 most recent Bear Cycles, the 2008 Housing Crisis and 2002 Dotcom Crisis, we can observe similar Cup & Handle patterns, with identical 1W RSI sequences (oversold on their bottom and starting a Channel Down when the Handle begins).
The rally that followed after the Handle in 2011 and 2005 started another pull-back to the 1W MA50 (ellipse) just a few months after when the 1W RSI hit the top of its Channel Down. The chart shows that we might be in a similar situation right now. As a result, long-term investors may seek an additional buy entry as close to the 1W MA50 as possible like the late October bottom.
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NAS100 Bullish Scenario: The Only Long I See (Daily/1 Hour)Fundamentally, 2023 was a strong year for stocks notably tech, which has created a strong bullish anticipation for 2024. We are in the midst of a CPI release coming this Thursday on the 11th. It is obviously the most important data release of the year (since we're 9 days in lol). More seriously it is the factor that WILL determine the move to come (no shit). By default I am bullish for speculative and technical reasons so I propose a rational entry for a long position assuming the show will go on. Here is the technical reasoning:
1. Price wicked perfectly on the DAILY 'bullish' 0.618 fib level during the Friday 5th session. This serves as our first bullish signal.
2. Throughout the session an intermediary range was created with a high that will serve as our BOS ('break of structure') line.
3. Throughout that same session and the following session (Monday 6th) price bounced twice, precisely, on its fib 'reload zone' which is the area that ranges between 0.618 and 0.782 (0.702 is extremely effective). These zones tend to render good entries if it's line with the general outlook (fundamentals + daily/weekly trend + general analysis). This serves as our second bullish signal.
4. With our BOS (third bullish signal), an FVG ('fair value gap') was formed. I couldn't explain why it works but with back testing and live testing, it changed the game for me. This FVG serves as another entry point. Why this FVG and not the ones above? We want the one with the highest probability of success so we pair it with the 'reload zone'!
5. By tracing a trend-based fib, which honestly I just learnt how to use today, you'll notice how price reacted perfectly to the 1.702 fib. This is just a way to increase the legitimacy of my analysis and to seem like I know things. But it is a high that we'll use for our potential profit taking (spoiler!).
6. The trade: we have a confluence of factors which giveth the highest success probability (in my opinion) for an entry point (EP) IF we are backed by a strong data release. So EP:16430, MAX SL:16240 / MIN SL: 16330 (based on the low of the FVG) and TP1: 16675 (the high/fib 1.702) / TP2: 17000 (a nice round number which is a good target since it represents a strong psychological bias for all traders). This gives a good RR 1:3 so in the midst of the CPI release which could basically f*** everything up, I wouldn't risk more than 1%. For trade management put the SL in BE when price has taken TP1.
Note: if the CPI is very bullish, just leave approx. 20% of the position to flow to new highs (TP3).
NFA and happy trading! :)
NASDAQ is going to pull back to the bottom of the broken channelWhen NASDAQ index reached the midline of the main historical channel, the hammer landed on its head. Then the bottom of the ascending channel was lost and now it is pulling back to the bottom of the broken channel with the confirmation of the indicator for a pullback.
The predicted route is specified.
7 Dimension Trade idea For Nasdaq 😇 7 Dimension Analysis
Time Frame: H4
1️⃣ Swing Structure: Bullish
🟢 Structure Behavior: Break of Structure (BoS)
🟢 Swing Move: Corrective move, indicating a Point of Interest (POI) for potential reversal. Vigilance is required for a bullish reaction at this level.
🟢 Inducement: Not done yet; waiting for a proper internal bullish BoS.
🟢 Internal Structure: Currently bearish, anticipating a shift with a bullish BoS.
🟢 Decisional Order Block: About to be mitigated.
🟢 Demand Area: Identified via FVG, indicating a discounted area.
🟢 Time Frame Confluence: Daily and H4
2️⃣ Pattern
🟢 CHART PATTERNS: No significant chart patterns observed.
🟢 CANDLE PATTERNS: Various signals: Record Session count, Shrinking long wick, Change in guard with engulfing, Doji, Momentum, Inside bar, and a blended combo suggesting a potential reversal.
3️⃣ Volume
🟢 Fixed Range: Bullish dominance in these areas.
🟢 Volume during Correction: Comparatively less during correction than in impulsive moves.
4️⃣ Momentum RSI
🟢 Zone: Extremely Bearish
🟢 Range Shift: Waiting for a potential shift from bearish to sideways. Two strong bullish divergences indicate weakness in bearish momentum.
🟢 Loud Moves: Conventional RSI theory suggests an extremely oversold market, possibly signaling a reversal.
🟢 Grandfather Father Son Entries: A robust 7-star buy signal.
5️⃣ Volatility Bollinger Bands
🟢 Price is already under the Middle band.
🟢 After a strong expansion, the market is moving into contraction, indicating a potential bullish sideways move.
🟢 Squeeze breakout awaited.
🟢 Walking on the band not yet.
6️⃣ Strength According to ROC
🟢 Values: Nasdaq shows the highest rate of bullish sentiment compared to all other indices.
7️⃣ Sentiment
Price action signals a clear long entry, but other dimensions like momentum and volatility tell a different story. Waiting for final volatility and momentum confirmation for a long position.
✔️ Entry Time Frame: H4
✅ Entry TF Structure: Bullish
☑️ Current Move: Corrective
✔ Support Resistance Base: FVG demand area
☑️ Candles Behavior: Bullish signals intact - RSC, Long wicks, Doji, Inside, Momentum.
☑️ FIB Trigger Event: Occurred
☑️ Trend Line Breakout: Breached but not confirmed.
💡 Decision: It's prudent to wait until the price provides a proper internal structure breakout. Once a bullish BoS is confirmed, consider a buy. I will update entry, take profit, and stop levels when triggered.
🚀 Entry:
✋ Stop Loss:
🎯 Take Profit: 2nd Exit if Internal Structure changes, also Exit 3rd Trendline Breakout, FOMO.
😊 Risk to Reward Ratio:
🕛 Expected Duration:
SUMMARY: The analysis suggests a potential bullish reversal but advises caution until the price demonstrates a clear internal structure breakout. Various signals indicate a reversal, and a detailed plan will be updated upon market confirmation.
NASDAQ Hit the Channel's Top. Mid-term correction expected.Nasdaq (NDX) hit (and marginally broke above) its November 2021 All Time High (ATH), completing the expected Megaphone pattern we shared with you on November 16 (see chart below):
Last Thursday (December 28) the index hit the Higher Highs trend-line that started on the August 16 2022 High and can be treated as the top of a Channel Up pattern. The key here is the 1D RSI, which is developing a Channel Down, i.e. Bearish Divergence, similar to the July 19 2023 High.
As a result, it is highly likely to see a good medium-term pull-back, which within the Channel Up pattern has been around -8.50% on average. Such a decline would approach the 1D MA200 (orange trend-line). Our target is 15550.
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Nasdaq sell signal Analysis Greetings traders, recently NQ has seen significant bullish momentum. While I maintain a bullish outlook for the long term, I anticipate a short-term retracement in the upcoming week before potential further upward movement, I'm interstend on shorting it at the FVG after a BOS while it's creating a MMSM .
NAS100 SMT UPDATESMy first idea is to short this, but I see the price has and have more momentum keep on reaccumulating everytime stops.
So my speculation on this is reaccumulating again at 16460$ zone.
Money got transfer at 16669, Im expecting price to 17100-17150$ per $Nasdaq.
No room for Shorts, but be always careful stoploss is our friend here!.
Trade at your own risk.
Follow for more.
Come and check me out for swing trades.
Daily and Weekly updates.
Quality ideas are here!
Thank you for all the support 500+ followers. im expecting only 400 followers this year.
THats why I keep posting some Good stuff.
Im just a nomad traders that you dont know. Experience is my key to success on trading.
I hope you do too.
Nasdaq weakness before Christmas?Nasdaq weakness before Christmas?
Barely hanging on to gains in a streak lasting ten days, US stocks managed to recover from initial losses and were trading slightly higher on Wednesday. The attempt to secure a tenth consecutive session of gains pushed the Nasdaq 100 to a new record high of 16,830.
In December, the Nasdaq has seen an increase of over 5%, and its performance for 2023 stands at 43%, on track for its best year since 2020. These gains can be attributed to expectations of the Federal Reserve cutting interest rates next year. Additionally, positive economic data this week exceeded expectations, with existing home sales unexpectedly rising and CB consumer confidence experiencing its most significant increase since early 2021.
The NAS100 Index is currently trading above both the 200-day and 50-day moving averages, indicating a bullish trend. However, it is not far from yesterday’s close which raises caution, as it could suggest either a consolidation phase or a potential reversal.
In the short term, there may be some weakness targeting the 16,750 area and 16,400, the latter being the level where consolidation occurred at the beginning of December before the most recent upward movement.
NASDAQ Hit the ATH but has one more push to give.Nasdaq (US100) hit yesterday the 16772 All Time High (ATH) level, reaching in the process our 16680 short-term target as shown on our December 11 call (see chart below):
The dominant pattern on the 4H time-frame is a Channel Up and the price is trading on its middle. As long as the 4H MA50 (blue trend-line) supports, any pull-back is a buy opportunity for at least one more push marginally above the 5.0 Fibonacci extension, as it happened on the November 14 pump. Our target is 17300.
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NAS100/USCASH100 CFDBased idea wait for a retracement maybe a lower of 15500 zone.
before we could get the 2021 highs 16700 zone.
I will update this weekly if price reach the zone on lows and highs.
This is only my view.
This is not a financial advice or signals.
For more daily or weekly updates Follow for more.
COme and check me out for daily scalping
trades.
KEEP UPDATED on Weekly.
Not posting Daily if price not meet my criteria.
Lets call it a swing trades.
If youre old on my followers focus on One pair.
its kind of boring trades but its worth it to wait.
Advice 101:
Trading in the financial markets can be a profitable endeavor, but it also carries certain risks.
NASDAQ Last obstacle before a Christmas rally.Nasdaq (NDX) completed the short-term pull-back we called on our latest November 29 analysis (see chart below), hitting our 15750 target and then rebounding:
This rebound can seasonally be the start of the end-of-the-year rally, which the market calls 'Santa' or 'Christmas' rally. However, one last Resistance level remains before it is confirmed and that is the top (Lower Highs trend-line) of the (blue) Channel Up, which happens to also be synched with the Lower Highs trend-line of the 4H RSI.
If the index closes a 4H candle above it, we will buy and aim for a +6.34% rally (from the bottom), which has been the minimum bullish sequence since June, and target 16680 (Resistance 1), which is the December 28 2021 High, essentially the first Lower High of the 2022 Bear Cycle. A notch higher on that rally, the index can even test the 16770 All Time High.
On the other hand, if Nasdaq breaks below the bottom (Lower Lows trend-line) of the Channel Down first, most likely will have made contact with the 4H MA200 (orange trend-line) by then, we will sell instead and target 14900 (-7.60% from the Lower High, which is the minimum short-term decline since June).
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NAS100 TECHNICAL ANALYSIS Today is NFP and anything can happen, but according to my analytics that am using, which is universal to everyone, PRICE , PRICE MOVEMENTS , I would like to see a pullback to a Fib level 61.8 which perfectly fit with the previous resistance which is about to turn into Support if the level Holds.
If not then I will be buying at the support level, why? Because the Index have 2 weeks in range, no clear move, and will apply the simple approach or rule of thumb which say's "BUY LOW & SELL HIGH", in this in case, according to my understanding when the price is at support, with the right tools one always have a chance to buy.