CME_MINI:NQ1!   NASDAQ 100 E-mini Futures
Hello everyone,

As you may know, the NASDAQ has been hit hard for the past year due to interest rate hikes, supply chain disruptions and constant pressures from the FED to crush demand.

Despite these challenges, I believe that the NASDAQ has reached a temporary bottom. This is not to say that this is the true bottom of the crash, but the NASDAQ has broken through the resistance of a parallel channel, which is a positive sign.

It is important to note that this is only my opinion and should not be considered as financial advice. However, I do believe that this is a good time for me to invest in companies with strong balance sheets and prepare for the long-term. These companies will be able to weather any further downturns and be in a strong position to take advantage of the market recovery when it comes.

It is also worth noting that the stock market looks forward 6 to 9 months into the future. Most economic outlooks for the end of 2023 indicate a recovery in the stock market. This means that even though the current situation may be difficult, there is light at the end of the tunnel. Also, if we take a look at the market cycles, we might as well be in the Disbelief rally as everybody expects the pain to continue. This leads me to believe that the fear of a recession is already priced in as well as the fact that the FED will soon be forced to U-turn.

What will break my thesis would be if the NASDAQ breaks again trough the channel, where I would expect another 20% down from the current lows. Still, timing the market is extremely hard, so if a long-term horizon is being taken, the prices of my favourite companies are extremely attractive.

In conclusion, I believe that the NASDAQ has hit a temporary bottom after a bear market, interest rate hikes, and supply chain disruptions. While this may not be the true bottom of the crash, it is a positive sign and a good opportunity for long-term investment.

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.