1. Looks like a possible low here, and the pattern on the QQQ goes back 18 months.
2. Also, this Inverse Cup & Handle we are now in the handle area. If we continue higher, we may chop our way out of the Vanna Nightmare we have got into here. This pattern is seen at the end of Bear Markets only. Also we have the following showing Bear Market Ending Patterns as well:
SNOW TEAM AMD NVDA LRCX QCOM MSFT ADI ACN CRM FB AMAT ADBE AMZN ORCL INTC CSCO MU AAPL INTU IBM TXN AVGO NOW
Old School Tech
3. We have varied patterns here, the old school Tech looks like in breakout mode, as value plays being kept down for so long;
New School Tech
4. We have MSFT and especially CRM, SNOW (Perfect Example - Textbook), and QQQ showing a POSSIBLE end to this crappy Bear Market we have been in a Rolling Bear Market since GME blowup in January 2021.
5. VIX - Buy Tech
The VIX once again over 30. When the VIX is over 30, you hold your nose and buy stuff. At this point I would choose Tech, Old School Tech, Financials, Energy (on pullbacks), Dividend / Yield Stuff.
Yields
I would also think about buying Bonds at this point as well. Yields are played out.
6. What to Avoid
ALL PRICED IN
7. Looking like pretty well global slowdown, inflation, high yields, supply chain issues, China Lockdown, and Tactical Nuclear War are priced in.
I would avoid Utilities and Consumer Staples, and all defensive's are way overbought.
Cheers
- drchelsea
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UPDATE
April 26th Bottom
Quote from April 25th
"We though, believe, that we are at the end of a Bear Market that goes back 18 months.
We trade, and have long term accounts. Long term, I like old school dividend tech, and beaten down tech that is profitable and can pass on costs at this point.
Short term, I wouldn't do very much until you are professional trader.
Traditionally VIX over 30, and approaching 35 is the time to buy stock historically.
That being said, there may be more pain / downside ahead. Looks though, like a bottoming process, and if you ever catch it exactly, it is a fluke.
Have a good one. Cheers"
QQQ Target $460
48 Percent from $312
TARGET $460
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Where to Find Dr. Chelsea?
If you looking for me, I will be in "Shorts Hell", which is exactly what the NEXT 4 TO 6 MONTHS WILL BE.
I will be there with a bag of popcorn to watch the Short Carnage. The whining is just starting.
And literally made a final low, and now we go up 48 Percent from here on the QQQ. Have a good one. I would ask that you and @slavrenz short all the way up and please report back as you do so. Cheers.
jdgpro
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I would zoom out to weekly. Yeah...umm I think ya missed the ginormous head and shoulders that just completed pointing to 210 QQQ..
T-r-X
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Wrecked
mstickell
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Wouldn't an Inverse Cup & Handle mean that we are going down?
drchelsea1
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Not unless breached.
WicktatorFX
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Lol. This clearly wasn’t worth the html it was printed on.
RobBiddle
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Bear market is just beginning. COVID Crash was a correction during a bull market not a bear market, 2 months is not a bear market. This market as a LONG WAY to go down. There will be some good bounces up but the bubble has burst and we're on the doom train for at least a year. See you at the 200 Month MA.
drchelsea1
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@RobBiddle, I absolutely agree. It makes perfect sense to short say AMD or MSFT at these levels. Perfect sense. I usually advise people whose money I invest in a 5 to 10 year timeframe to
1. Go ALL IN at the TOP
2. Go ALL Short at the BOTTOM.
You have to consider risk / reward, and the fact the Fed has done nothing but a .25 so far.
Shorting when stuff is down 50 percent or more is absolutely the best strategy! Genius You Are!
Thank you!
I will sell everything and go short today. You are the best!