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TQQQ

Updated Analysis on Tech (QQQ)This is the daily chart of SQQQ. SQQQ is the ETF that tracks the Nasdaq 100 ETF ( QQQ ) inversely. When tech stocks fall, SQQQ rises. Traders, therefore, use SQQQ to short tech stocks, or to hedge against a collapse in tech prices. There are several bearish signals appearing in the daily chart of SQQQ, which hint that we may soon see bullish movement for QQQ and the Nasdaq. First, there is decreasing volume in the daily chart of SQQQ, which shows that fewer and fewer market participants are opening new short positions against the Nasdaq. This is occurring even while the price of SQQQ continues to move up. This divergence is bearish and is usually the earliest sign that a reversal is coming. Second, there are major gaps up appearing on the daily chart. Gaps to the upside on SQQQ have historically never failed to close back to the downside. Therefore these gaps should be viewed skeptically, as they fail to validate upward price action. Third, the upper limit of the Fibonacci Bollinger Band continues to act as strong resistance, continuing the more than a decade-long trend whereby price cannot sustain itself above this line on any sustained basis. This line has mathematical importance, it reflects a level of price deviation where, after being reached, price begins to show a mean-reverting tendency back to the downside. In this case, SQQQ's mean reversion would be bullish for QQQ and the Nasdaq. There are many other indications that are showing that SQQQ is too overextending, including the extremely over-heated Stochastic Heat Map. The NDTH is also indicating that a very significant bottom is forming for tech and the Nasdaq. In fact, the Nasdaq is so oversold that the current levels have not been seen this the market crash of 2008-2009. Therefore, SQQQ has effectively priced in a significant recession. While a significant recession might indeed be on the horizon, if a significant recession does not ensue, then we can be fairly certain that a major short squeeze for SQQQ will occur: However, the strongest bullish argument for SQQQ (bearish argument for the Nasdaq) is that weekly price broke through the Ichimoku Cloud for the first time ever. The only plus here is that the weekly candle is a spinning top and most oscillators are trending back down. Regardless, with SQQQ being this historically overextended, it can represent a rare opportunity to buy QQQ and tech stocks before a massive short squeeze occurs. While anything can happen, and one should always use stop losses, this chart does not convince me that SQQQ is about to breakout much higher to the upside. Therefore, I remain a holder of tech and growth stocks for the intermediate-term. Not financial advice. Anything can happen and trends can end.
NASDAQ:SQQQ
by SpyMasterTrades
4
Here's Why You Should Think Twice Before Selling TechThis is a 2-month chart of the Nasdaq US Composite Index (IXIC). At the bottom is the Stochastic RSI which oscillates up and down depending on how overbought or oversold the market is. There have only been a few times since its inception a half-century ago, that the Nasdaq Composite Index had a 2-month chart this overextended to the downside. The K value of the Stochastic RSI has actually reached zero. If the 2-month chart closes at that level, it will mark a super rare occurrence that has only occurred twice in the history of the Nasdaq (the last time being at the bottom of the Great Recession). I calculated the one-year returns for the Nasdaq one year (from low to high) after the K value of the Stoch RSI on the 2-month time frame dropped below the oversold line (to or nearly to 10). For the case of the Dotcom bust and the Great Recession, I selected the point when the Stoch RSI's K value first reached 0, which is its current reading and which is thus fairly comparable. Even during these significant economic downturns, buying at this oversold level produced decent returns one year out. Obviously, past price action does not guarantee future price action, but history does tend to repeat itself. Odds are that ten years from now you'll probably be wishing you had bought into this oversold level. Here are the one-year returns from the market bottom during the 2M period (when the Stoch RSI K value met the criteria listed above) to the market top of the 2M period one year later: +95.78% +36.47% +31.24% +78.89% +20.17% +69.50% +27.14% +52.36% Mean: +51.44% Not financial advice. As always anything can happen.
TVC:IXIC
by SpyMasterTrades
Tech is at a Significant BottomI'm surprised that no one on Trading View posted this chart today. The NDTH is a chart of the percentage of Nasdaq 100 stocks that are above their 200-day moving average. It dropped to 6.86 today. This means about 94% of Nasdaq 100 stocks were below their 200-day moving average. The last time this level was reached was in March 2020 right at the bottom of the COVID market crash. The NDTH has never dropped below 15 except during significant bottoms on the Nasdaq. While anything is possible, it's highly likely that we are seeing peak fear, peak inflation, and market capitulation currently. This extreme level makes for a very good risk-to-reward setup for going long. My strategy is to place a 2x daily ATR stop loss on QQQ or TQQQ. It's likely if we drop below this level then we're in for a deep recession. Whereas if this low holds, then this is a major bottom for tech.
INDEX:NDTHLong
by SpyMasterTrades
10
QQQ Uptrend BULL biasFrom the Daily Chart, QQQ is now in an uptrend above the support of the daily SMA 50, 100, and 200 in somewhat of an ascending wedge pattern. Distant support is the buy order zone while distant resistance is the sell order zone above. Immediate ( and breakable ) resistance is the POC of the volume profile. I conclude that QQQ is in a sustained up-trend that could be entered using a stop loss set just below the SMA 200 on the chart in blue. What is your opinion? NASDAQ:QQQ Please comment.
NASDAQ:QQQLong
by AwesomeAvani
1
TQQQ to 35Two Ways I want to play this move if it happens 1) I expect until Wednesday 7/27 that we are going to remain balanced between roughly 27 to 32 IF we get that clean break to the upside hard and fast (giggity) then I want to be looking to play that 35 to 36 rejection short. I am likely to swing this move, maybe day trade! but I will have to see what its looking like if it sets up. Leaning more towards a swing trade over next day or two 2) I want below 28.57 to pick up my first long entry. If we dip to 26 I will add once more to swing the contracts into that 35 short entry I am targeting This is only IF we set up with price holding that 26 to 27 area of support. If that is broken and held below this plan is invalid as the overall market is going lower and shorts to the downside would be in play at that point
NASDAQ:TQQQ
by TheFibonacciKing
false break or trend changethe reversal pattern is in if we close above the key levels marked out. we have tested this sentiment a few times in the past month, but each time its proven resistive. if that pattern turns green and we close in a bullish pattern breaking out of this wedge to the upside daily id imagine were in for the upper horizontals, and if we stay with sss and qqe in the red treating this area as resistive id imagine it gets shorted back down to the lower horizontals. bulls really want to hold that orange line (high volume area), and bears want to move below it.
NASDAQ:TQQQ
by cerealpatterns
Time to Buy Stocks? TQQQ Analysis -73% There is something to be said about speculation. Here we have the QQQ 3X fund, testing a key area. Not only are we testing a key area, but "large-risk" (largER anyway) is currently sitting -68% from the all time high.... Even more weird, when the whole world economy was shut down in 2020, TQQQ contracted -73.28%; oddly enough, at least in this view... we bounced at... -73.28%. (these measurements could be off by a few percentage points I just measured it once and they happened to be the same measurement. Anyway, this looks like a good risk reward entry. I have bought and will continue to provide updates. For now, I have bought with the expectation that price will test the all time high from here. God bless.
NASDAQ:TQQQLong
by ChiefMacro
8